Under a floating exchange-rate regime with a high degree of capital mobility, a change in the exchange-rate value of domestic currency following contractionary fiscal policy is most likely to
A. cause a surplus in the financial account.
B. decrease the country's holdings of official reserve assets.
C. induce inflow of foreign capital.
D. improve the current account.
Answer: D
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Answer the following statement(s) true (T) or false (F)
1. The economic model of supply and demand is one that can be tested using data. 2. When an economist talks about equilibrium he is specifically discussing a situation where the quantity supplied equals the quantity demanded. 3. The fact that grocery stores and convenience stores sell physically identical products for different prices is a violation of the "law of one price. 4. In the supply/demand model, prices and quantities are exogenous variables. 5. While the model o'False supply and demand has been around 'Falseor a long time, it has survived more because it mimics reality than because it actually predicts something.
Which of the following market types has the fewest number of firms?
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly E) perfect competition and monopolistic competition
Define net borrower, net lender, creditor nation, and debtor nation. Discuss the difference between a net borrower and a debtor nation
What will be an ideal response?
Switching to a faster economic growth path comes at the cost of lower
A) present investment. B) present consumption. C) future investment. D) present saving. E) future saving.