The U.S. dollar will depreciate if the Canadian inflation rate falls from 5 percent to 3 percent
Indicate whether the statement is true or false
TRUE
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Compared to a country with an MPC of 0.9, a country with an MPC of 0.5 would have to change government expenditures by ________ as much to have the same impact on real GDP.
A. twice B. three times C. four times D. five times
The GDP gap is the difference between:
a. frictional unemployment and actual real GDP. b. unemployment rate and real GDP deflator. c. actual real GDP and full-employment real GDP . d. full-employment real GDP and real GDP deflator.
The record of all transactions with foreign nations that involve the exchange of merchandise goods and services or unilateral gifts is called the: a. capital account
b. current account. c. balance of trade. d. balance of payments.
If a country has a collapsing currency due to large budget deficits financed by monetary expansion, the cure is to
A) default on sovereign debt and restructure the economy. B) peg the currency to something different. C) cut the deficit and raise interest rates. D) increase the rate of inflation to reduce the real value of government debt.