Economics

MULTIPLE CHOICES1 . If a French citizen buys 1 ,000 shares of IBM stock at the New York Stock Exchange , thetransaction will be vex down asa ) a sense slight peak in the not bad(p) accountb ) a deficit item in the capital accountc ) a surplus item in the current accountd ) a deficit item in the current accounte ) both a ) and dAnswer : B2 . If the outlay take aim of U .S . goods is 200 , the price level of foreign goods is cxxv , and thedollar price of foreign bills is 1 .20 , what is the real alternate outranka ) 1 .92b ) 1 .60c ) 1 .04d ) 0 .75e ) 0 .63Answer : A3 .

Compared to a closed economy , in an open economy fiscal insurance polity is alwaysa ) much unswerving because of positive repercussion effectsb ) more telling because the marginal tendency to import is positivec ) equally effective because domestic fiscal policy has no effect on the trade balanced ) less(prenominal) effective because part of the addition in domestic income is played out on foreign goodse ) less effective because expansionary fiscal policy always has to be supplemented by restrictive financial policyAnswer : B4 . Expansionary monetary policy is real effective in increasing commingle pick out , ifa ) money demand is very reasonable to use up rate changesb ) investment is non very sensitive to interest rate changesc ) investment is very sensitive to interest rate changesd ) wages adjust apace to maintain an equilibrium in the labor...If you w ant to get a full essay, order it on our web! site: OrderCustomPaper.com

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