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The competitive advantage from a devaluation is likely to be offset by _______ and ________?

Economics Mcqs, Macroeconomic Issues and Analysis /
The competitive advantage from a devaluation is likely to be offset by _______ and ________?

A. higher import prices, higher wages increases
B. lower export prices, lower imports volumes
C. higher import prices, lower export prices
D. higher wage increases lower import volumes

The competitive advantage from a devaluation is likely to be offset by _______ and ________? Read More »

Economics Mcqs, Macroeconomic Issues and Analysis

In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?

Economics Mcqs, Macroeconomic Issues and Analysis /
In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?

A. money supply targets
B. income policy
C. interest rates
D. inflation targets

In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators? Read More »

Economics Mcqs, Macroeconomic Issues and Analysis

Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?

Economics Mcqs, Macroeconomic Issues and Analysis /
Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?

A. buy foreign exchange, sell domestic currency
B. sell foreign exchange buy domestic currency
C. buy foreign exchange buy domestic currency
D. sell foreign exchange sell domestic currency

Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ? Read More »

Economics Mcqs, Macroeconomic Issues and Analysis

When capital mobility is perfect interest rate differentials will tend to be offset by ?

Economics Mcqs, Macroeconomic Issues and Analysis /
When capital mobility is perfect interest rate differentials will tend to be offset by ?

A. Price difference
B. balance of payments difference
C. current account differences
D. expected exchange rate changes

When capital mobility is perfect interest rate differentials will tend to be offset by ? Read More »

Economics Mcqs, Macroeconomic Issues and Analysis

Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?

Economics Mcqs, Macroeconomic Issues and Analysis /
Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?

A. deficit
B. surplus
C. revaluation
D. devaluation

Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ? Read More »

Economics Mcqs, Macroeconomic Issues and Analysis