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Question
Suppose that the rest of the world experiences an economic boom causing an increase in foreign output (Y*). This increase in Y* will not cause which of the following to occur?
A) the domestic country's output to increase
B) the domestic country's consumption to increase
C) the domestic country's output to increase and its trade balance to worsen as imports increase
D) all of the above
E) none of the above
Answer
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Related questions
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A) will cause investment to decrease.
B) will cause investment to increase.
C) may cause investment to increase or to decrease.
D) will have no effect on output.
E) will cause a reduction in output and have no effect on the interest rate.
Q:
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Suppose there is a simultaneous central bank sale of bonds and tax increase. We know with certainty that this combination of policies must cause
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For this question, assume that policy makers are pursuing a fixed exchange rate regime. Now suppose that a reduction in stock market wealth causes a decrease in consumption. Which of the following will tend to occur in a fixed exchange rate regime?
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In an open economy, which of the following will cause an increase in the size of the multiplier?
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C) investment income.
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D) the inflation rate first increases, and then remains constant.
E) the inflation rate increases over time, but then rapidly decreases on its own.
Q:
Given nominal money growth, the amount of seignorage will be greater when
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B) real money balances are larger.
C) the inflation rate is higher.
D) foreign lending is higher.
E) none of the above
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When the budget deficit is financed entirely through money creation, the real budget deficit is equal to which of the following?
A) ΔH
B) ΔH - ΔP
C) (ΔH)/P
D) (ΔH)/H
E) P[(ΔH)/H]
Q:
Based on our understanding of the U.S. budget, we know that
A) government accounts treat asset sales as revenues.
B) government accounts do not treat asset sales as revenues.
C) the NIPA accounts treat asset sales as revenues.
D) neither the government accounts nor the NIPA accounts treat asset sales as revenues.