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

Economics

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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

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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

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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

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Refer to the above figure. Point C is known as

A) a peak. B) a trough. C) an expansion. D) a contraction.

Economics