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Macroeconomic Issues and Analysis

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

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

All of the following are benefits of the single market except ? Read More »

Economics Mcqs, Macroeconomic Issues and Analysis

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

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

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

Economics Mcqs, Macroeconomic Issues and Analysis

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

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

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

Economics Mcqs, Macroeconomic Issues and Analysis

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

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

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

Economics Mcqs, Macroeconomic Issues and Analysis

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

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

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

Economics Mcqs, Macroeconomic Issues and Analysis

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

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

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

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

Economics Mcqs, Macroeconomic Issues and Analysis

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 ?

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

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 ? Read More »

Economics Mcqs, Macroeconomic Issues and Analysis