Under the flexible exchange rate system, when a country tries to stimulate economic growth and improve its employment rates, it is likely to cause:
a. the domestic inflation rate to rise and the domestic currency to depreciate.
b. the domestic inflation rate to rise and the domestic currency to appreciate.
c. the domestic inflation rate and the value of the domestic currency to remain constant.
d. the domestic inflation rate to fall and the domestic currency to appreciate.
e. the domestic inflation rate to fall and the domestic currency to depreciate.
c
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When marginal cost is greater than average total cost, the
A) marginal cost decreases as output increases. B) marginal cost does not change as output increases. C) average total cost increases as output increases. D) average total cost decreases as output increases.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Price Per PizzaQuantity Demanded$0?$5200$1075 Refer to the table, which shows part of the weekly demand schedule for pizza in a certain town. The current market price for pizza is $5 per pizza. According to the laws of economics, which of the following could be the missing number?
A. 125 B. 500 C. 0 D. Infinity
For open economies,
A) S = I. B) S = I + CA. C) S = I - CA. D) S > I + CA. E) S < I + CA.