What is the relationship between a nation's monetary and fiscal policy and its exchange rate?
What will be an ideal response?
Poor fiscal prospects for a nation can lead to a lack of confidence in that nation's currency. This is especially true for emerging countries but during the financial crisis of 2007-2009 it was even true for industrialized nations. A nation's monetary and fiscal policymakers can calm the global fears by acting in a timely and responsible manner to manage a nation's economy.
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What are the two broad sources of potential GDP growth?
What will be an ideal response?
Who receives corporate interest before any disbursement of profit is made to others?
a. employees b. management c. shareholders d. banks e. bondholders
Figure 9-3
Suppose that U.S. tastes for British goods increase. Then, in
a.
the supply curve shifts from S1 to S2
b.
the supply curve shifts from S2 to S1
c.
the demand curve shifts from D2 to D1
d.
the demand curve shifts from D1 to D2
e.
both demand and supply shift to the right
Which of the following is not considered a factor of production?
A) money B) capital C) land D) entrepreneurial ideas E) labor