Under the Bretton Woods system, countries experiencing large and persistent current account deficits were obliged to devalue their currencies and/or take measures to cut their deficits by contracting their economies.
Answer the following statement true (T) or false (F)
True
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The economic problem refers to
A. not having enough money. B. the attempt "to secure the greatest amount of pleasure with the least possible outlay". C. the notion that the wealth of nations depends on that country's ability to produce goods and services. D. None of the choices are true.
Assuming no change in the nominal exchange rate, how will a higher rate of inflation in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will rise. B) The real exchange rate will be unaffected. C) The real exchange rate will fall. D) The impact on the real exchange rate cannot be predicted.
Which of the following is included in the demand for loanable funds?
a. investment and government borrowing b. investment but not government borrowing c. government borrowing but not investment d. neither government borrowing nor investment
At an output at which ATC is greater than MC
A. the AFC curve is upward sloping. B. the AVC curve is upward sloping. C. the ATC curve is upward sloping. D. the ATC curve is downward sloping.