Under the IMF fixed exchange rate system, a nation running a balance of payments surplus would have an excess __________ its currency in the foreign exchange market and that nation's central bank would have to __________ some of its currency
A) supply of; buy
B) supply of; sell
C) demand for; buy
D) demand for; sell
D
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In the 1960s, the Phillips curve was ________
A) consistent with a positive relationship between inflation and unemployment B) suggestive of a temporary trade off between inflation and unemployment C) a very popular explanation for inflation fluctuations D) all of the above E) none of the above
Among the key ingredients that propelled the American economy to emerge as the leading industrial power by the beginning of World War I were
A. the world's first universal public education system. B. a large agricultural surplus. C. entrepreneurial abilities of great industrialists. D. all of the choices are true.
When there are two large open economies, if desired international borrowing by the domestic country exceeds desired international lending by the foreign country, then
A. the world real interest rate must rise. B. domestic investment must fall. C. domestic investment must rise. D. the world real interest rate must fall.
Refer to the information provided in Table 33.2 below to answer the question(s) that follow.
Table 33.2
Refer to Table 33.2. In China, the opportunity cost of
A. a tractor is 10 motorcycles. B. a motorcycle is 10 tractors. C. a motorcycle is 1/30 of a tractor. D. a tractor is 1 motorcycle.