In the short run the level of floating exchange rates is determined mainly by ?
A. interest rates
B. competitiveness
C. trade
D. speculation
Macroeconomic Issues and Analysis
The competitive advantage from a devaluation is likely to be offset by _______ and ________?
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
In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?
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
Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?
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
When capital mobility is perfect interest rate differentials will tend to be offset by ?
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
Within the circular flow of income, an increase in domestic income will tend to increase ?
Within the circular flow of income, an increase in domestic income will tend to increase ?
A. exports
B. taxes
C. inventories
D. imports
Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?
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
In a fixed exchange rate regime, the central the exchange rate ?
In a fixed exchange rate regime, the central the exchange rate ?
A. selling, increase
B. buying reduce
C. selling, reduce
D. buying increase
E. A and B
F. C and D
When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ________?
When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ________?
A. depreciates, appreciates
B. revalues, devalues
C. appreciates, depreciates
D. becomes more expensive becomes cheaper
If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?
If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?
A. falls; falls; falls; surplus
B. falls; rises; falls; surplus
C. is static; low; rises; deficit
D. rises; falls; rises; deficit