When the exchange rate is determined by market forces and an economy is experiencing a net inflow of capital, the economy will tend to
a. run a budget deficit.
b. run a trade deficit.
c. experience an increase in the supply of money.
d. experience a reduction in the supply of money.
B
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To help pull an economy out of a recession and put additional income in the hands of the public, a government can force its expenditures to ________ its revenues and create a ________
A) reduce; deficit B) exceed; special taxes C) stimulate; depression D) exceed; deficit
In the above figure, which movement illustrates the impact of a constant price level and a rising money wage rate?
A) E to I B) E to F C) E to J D) E to H
Following the war-time prosperity for capital and the rich during World War I (1914–18), income distribution trended towards greater equality when peace came and market forces replaced the economy's wartime concerns in determining income
distribution. Indicate whether the statement is true or false
Refer to the above figure. Point C is known as
A) a peak. B) a trough. C) an expansion. D) a contraction.