Considering its effects through income, the price level, and interest rates only, expansionary fiscal policy causes the value of a country's currency to:
A. move unpredictably.
B. rise.
C. remain unchanged.
D. fall.
Answer: A
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The country of Bienmundo does not trade with any other country. Its GDP is $30 billion. Its government purchases $5 billion worth of goods and services each year and collects $6 billion in taxes. Private saving in Bienmundo amounts to $5 billion. What are consumption and investment in Bienmundo?
a. $17 billion and $8 billion, respectively. b. $19 billion and $6 billion, respectively. c. $19 billion and $8 billion, respectively. d. $17 billion and $6 billion, respectively.
Which of the following labor demand curves will be the least elastic?
A. The long-run demand for labor for an elastic product B. The short-run demand for labor of a firm with L-shaped Isoquants C. The short-run demand for labor for an inelastic product D. The long-run demand for labor for an inelastic product
The idea of the life-cycle theory of consumption is that people make ________ consumption plans.
A. yearly B. seasonal C. lifetime D. cyclical
If Belgium has exports of 50 billion euros and imports of 40 billion euros, then it is running a trade deficit.
Answer the following statement true (T) or false (F)