In an economy with a fixed exchange rate, when the market forces try to change the exchange rate, the government:
A. must buy or sell its currency using its own reserve to bring equilibrium in the market to where it has "fixed" it.
B. declares it can't change, and holds it constant.
C. often has to deal with an unhappy domestic population who are constantly dealing with shortages or surpluses of their currency.
D. None of these statements is true.
A. must buy or sell its currency using its own reserve to bring equilibrium in the market to where it has "fixed" it.
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Which of the following is not part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (ACA)?
A) Individuals with pre-existing medical conditions are able to acquire health insurance. B) All policies must provide coverage for dependant children up to age 26. C) Limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated. D) Lifetime dollar maximums on coverage are prohibited.
Which of the following governmental expenditures are not included in gross domestic product?
a. The construction of federal buildings b. Social Security payments c. Salaries for senators d. Purchases of new defense weapons
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
How well fiscal policy works depends on how much the velocity of money can be changed by government tax and spending decisions.
Answer the following statement true (T) or false (F)