By internal balance, most economists mean
A.only fullB.only priceC.full employment and priceD.full employment and moderate increase inE.None of theAnswer: C
By external balance, most economists mean
A.avoiding excessive imbalances in internationalB.a balance between exports andC.a balance between trade account and serviceD.a fixed exchangeE.None of theAnswer: A
External balance means
A.balance in the country’s currentB.balance in the country’s serviceC.balance in the country’s financialD.balance in the country’s tradeE.None of theAnswer: E
A current account surplus
A.poses a problem if domestic savings are being invested more profitably abroad than they would be atB.may pose no problem if domestic savings are being invested more profitably ab...
Governments prefer to avoid excessive
Governments prefer to avoid excessive current account surpluses becauseA.the returns to domestic savings may be easier to tax than those on assets abroad.B.an addition to the home ...
Under the gold standard era of 1870 – 1914,
A.central banks tried to have sharp fluctuations in the balance ofB.central banks tried to avoid sharp fluctuations in the current account of the balance ofC.central banks tried to...
A country is said to be in balance of payments
A country is said to be in balance of payments equilibrium when the sum of its current and itsA.non-reserved financial accounts equalsB.reserved financial accounts equalsC.non-rese...
Under the gold standard,
A.a perpetual surplus isB.a perpetual deficit isC.a perpetual surplus is impossible, but a perpetual deficit isD.a perpetual deficit is impossible, but a perpetual surplus isE.a pe...
Under the gold standard,
A.a shortage of currency leads to low domestic prices and a foreign payments surplus.B.a shortage of currency leads to high domestic prices and a foreign payments surplus.C.a short...
Advocates of floating rate suggested it is favorable
Advocates of floating rate suggested it is favorable for economies for the following reasons EXCEPT thatA.it discourages attack from foreign exchange speculators because of the fac...
Which of the following is NOT a result of a temporary
Which of the following is NOT a result of a temporary fall in foreign demand on one country’s exports under floating exchange rate?A.The DD curve shifts to the left due to reducti...
Why will the “discipline” imposed on governments
Why will the 'discipline' imposed on governments by a fixed exchange rate disappear under a floating rate regime be a problem?A.Tempted to follow over expansionary fiscal policyB.T...
