【導(dǎo)讀】canproduceit.Absoluteadvantage:. Bydefinition.benefit.Differential:. A.spendingbyfirms.B.inflationrates.C.interestrates.D.inegrowth.

　　

【正文】 nt account to move to deficit. B. surplus and the current account to move to deficit. C. deficit and the current account to move to surplus. D. surplus and the current account to move to surplus. C An unexpected shift to a larger budget surplus would cause a decrease in aggregate demand and a reduction in domestic interest rates. This reduced demand discourages imports, which moves the current account toward surplus. The lower interest rates will encourage domestic investment to leave the country and discourage foreign investors form investing in the . The capital account will move toward deficit. Question ID: 25003 An unexpected increase in the growth rate of the money supply would: A. have no effect on exchange rates in the short run. B. cause real interest rates and aggregate employment to increase. C. cause real interest rates to fall, causing a depreciation of the dollar. D. cause real interest rates to rise, causing an appreciation of the dollar. C pUnanticipated shifts to an expansionary moary policy would lead to a more rapid economic growth, an unexpected increase in inflation, and lower real interest rates. The more rapid economic growth would lead to an increase in demand for imports. The higher rate of inflation makes domestic goods more expensive, reducing exports. Lower real interest rates reduce foreign investment. These factors increase the demand for foreign currencies and reduce the demand for the dollar, causing the dollar to depreciate. Question ID: 12892 An unanticipated shift to an expansionary moary policy will NOT lead to? A. more rapid economic growth, an accelerated inflation rate, and lower real interest rates. B. more expensive domestic products, which reduces exports. C. reduced foreign investment. D. an appreciating domestic currency. D An unanticipated expansionary moary policy will lead to all of the others except an appreciating domestic currency. Higher inflation will increase domestic products prices and make them unattractive to foreigners. As a result foreigners will reduce their demand for domestic products and will not demand the domestic currency as much as before. Coupled with declining foreign investment, which will also lead to reduced demand for the domestic currency the domestic currency value will fall relative to other currencies. Question ID: 25005 Current account deficits are: A. not an indication of a nation39。s economic health. B. usually acpanied by a deficit in the capital account. C. an indication that the economy is growing rapidly. D. the result of a country importing less than it exports. A A current account deficit occurs when a country imports more than it exports, and it is not an indication of economic health. There is no requirement that the current account balance be zero, in surplus or in deficit. Question ID: 25006 A current account surplus: A. is not an indication of a nation39。s economic health. B. is an indication of the strength of the economy. C. occurs when a country exports less than it imports. D. is an indication of significant foreign investment in the domestic market. A A current account surplus occurs when a country exports more than it imports, and it is not an indication of economic health. There is no requirement that the current account balance be zero, in surplus or in deficit. Question ID: 12894 Which of the following statements is TRUE? A. A nation39。s current account surplus or deficit is a good measure of the health of its economy. B. Capital inflows from foreigners are not bad even if the foreigners buy up domestic real estate, domestic industries and own other productive assets. C. Running a deficit in the current account balance simply means a country imports more than it exports, but a country can do this only for a short time. D. Countries that run current account deficits also run capital account deficits. B All statements except for the capital inflows statement are false. Current account deficits are neither good nor bad and countries can run such deficits for long periods of time. Current account deficits are usually acpanied by capital account surpluses that can sustain current account deficits for long periods. Question ID: 12898 A system involving a mitment of a country to use fiscal and moary policy to maintain the country’s exchange rate in a narrow band relative to another currency is a: A. variable exchange rate. B. fixed exchange rate. C. pegged exchange rate. D. unified currency. C By definition. Question ID: 25007 In a pegged exchange rate system the: A. exchange rate is fixed by governmental fiat and not allowed to float freely. B. currency is pegged to the movement of other currencies, such as the . dollar. C. moary authority maintains the exchange rate within a narrow band relative to other currencies. D. exchange rate is fixed by the currency board. C This type of system requires a country to use its moary policy to maintain the desired exchange rate within a narrow range relative to other currencies. Question ID: 12895 An exchange rate system that involves a country39。s mitment to use fiscal and moary policy to maintain the country39。s exchange rate within a narrow band is a: A. macroeconomic policy change system. B. pegged exchange rate system. C. fixed rate, unified currency system. D. floating exchange rate system B An exchange rate system that involves a country39。s mitment to use fiscal and moary policy to maintain the country’s exchange rate within a narrow band is a: pegged exchange rate system. Question ID: 12878 The . imposes a high tariff on a major imported item. Under a system of flexible exchange rates, this would tend to: A. increase the balance of trade deficit of the . B. c