Macroeconomic Issues and Analysis Archives

All of the following are benefits of the single market except ?

September 11, 2021May 31, 2019 by admin

All of the following are benefits of the single market except ?

A. it allows countries to exploit their comparative advantage, more fully
B. firm could more readily exploit
C. economies of scal
D. it intensified competition
E. it is easier to book holidays in member countries

In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?

September 11, 2021May 31, 2019 by admin

In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?

A. a nominal exchange rate, floated
B. a real exchange rate, pegged
C. a purchasing power parity, pegged
D. a real exchange rate, floated

If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?

September 11, 2021May 31, 2019 by admin

If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?

A. appreciate
B. depreciate
C. revalue
D. be in short supply

Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?

September 11, 2021May 31, 2019 by admin

Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?

A. depreciation
B. appreciation
C. fall
D. devaluation

A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?

September 11, 2021May 31, 2019 by admin

A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?

A. enhances
B. undermines
C. encourages
D. facilitates

With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

September 11, 2021May 31, 2019 by admin

With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

A. increased
B. unaffected
C. reduced
D. None of these

perfect international capital mobility suggests that international funds will be responsive to ________ differentials?

September 11, 2021May 31, 2019 by admin

perfect international capital mobility suggests that international funds will be responsive to ________ differentials?

A. current account
B. interest rate
C. tax
D. price

A rise in the real exchange rate will ________ the competitiveness of the domestic economy?

September 11, 2021May 31, 2019 by admin

A rise in the real exchange rate will ________ the competitiveness of the domestic economy?

A. increase
B. reduce
C. do nothing to
D. None of the above

A current account deficit means that a country may ?

September 11, 2021May 31, 2019 by admin

A current account deficit means that a country may ?

A. reduce its stock of foreign assets
B. increase its stock of foreign assets
C. increases its savings
D. increases its foreign currency reserves

If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?

September 11, 2021May 31, 2019 by admin

If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?

A. rise
B. fall
C. not change
D. fluctuate