“Under floating rates, the economy is more vulnerable to shocks coming from the domestic money market.”Answer: The statement is true. Under floating rates, a rise in real domes...
In the short run, with prices fixed, how would an increase in government spending affect the DD-AA schedule?A.It will increase output and appreciate theB.It will increase output an...
Answer: True. The main reasons are due to the fact that data collected or received from different sources may differ in coverage, accuracy, and timing. In addition, data on servi...
A.a rise in a country’s expected inflation rate will eventually cause a more-than proportional rise in the interest rate that depositors of its currency offer in order to accommod...
If the economy starts in long-run equilibrium, a permanent fiscal expansion will causeA.an increase in exchange rate,B.a decrease in exchange rate,C.an increase in output,D.a decre...