Homework Answers
Question 19
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful?
Answer : Yes with both goals.
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19 20
QUESTION 19 A country with a floating exchange rate faces a short-run recession and...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate With a fixed...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals
17 18 QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run...
17 18
QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O depreciate; rise appreciate; fall O depreciate; fall QUESTION 18 A balance of payments crisis is OA a sharp change in interest rates sparked by a change in expectations about the level of exports. ов. a sharp change in foreign reserves sparked by...
With a floating exchange rate, contractionary monetary policy, as the U.S. pursued in the early 1980s,...
With a floating exchange rate, contractionary monetary policy, as the U.S. pursued in the early 1980s, causes the currency to ____ and output to ____. A) appreciate; rise B) appreciate; fall C) depreciate; rise D) depreciate; fall
1. Under a floating exchange rate regime with a high degree of capital mobility, in the...
1. Under a floating exchange rate regime with a high degree of capital mobility, in the short run an expansionary fiscal policy will most likely create pressure on: a. the domestic currency to appreciate. b. the domestic currency to depreciate. c. monetary authorities to revalue the domestic currency. d. monetary authorities to devalue the domestic currency. 2. Under a floating exchange rate regime with a high degree of capital mobility, a change in the exchange rate value of domestic currency...
QUESTION 20 and output will In the short run, if the central bank decreases the money...
QUESTION 20 and output will In the short run, if the central bank decreases the money supply, the currency will O A. appreciate; rise B. depreciate; fall OC. appreciate; fall D. depreciate; rise Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro Search or type URL
15,16 Question Completion Status: QUESTION 15 With a fixed exchange rate, what would be effective stabilization...
15,16
Question Completion Status: QUESTION 15 With a fixed exchange rate, what would be effective stabilization policy during a recession? O Expansionary fiscal policy O Expansionary monetary policy O Contractionary fiscal policy O Contractionary monetary policy QUESTION 16 because it affects a component of aggregate demand. On the DD curve, exchange rate depreciation causes output to A. fall; investment B. fall; the current account o rise; consumption OD. rise; the current account QUESTION 17 shte in tame Inflation. The country's
7,8 Question Completion Status: QUESTION 7 Under standard assumptions, in the short run, currency devaluation causes...
7,8
Question Completion Status: QUESTION 7 Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. O remain unchanged. QUESTION 8 Which type of global exchange rate regime creates an asymmetry, with only one country able to conduct independent monetary policy? Floating exchange rates Gold standard Managed float Reserve currency system QUESTION 9 then country A's currency will be
In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase;...
In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate
5 and 6 QUESTION 5 In the long run, with variable real exchange rates, if American...
5 and 6
QUESTION 5 In the long run, with variable real exchange rates, if American goods become less attractive relative to European goods, the dollar will experience a real and a nominal depreciation; depreciation O appreciation; appreciation O depreciation; appreciation O appreciation, depreciation QUESTION 6 and output to A short-run increase in government spending causes the currency to depreciate; increase appreciate; increase appreciate; decrease O depreciate; decrease QUESTION 7 it to save and submit. Click Save All Answers to...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate With a fixed...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals
17 18
QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O depreciate; rise appreciate; fall O depreciate; fall QUESTION 18 A balance of payments crisis is OA a sharp change in interest rates sparked by a change in expectations about the level of exports. ов. a sharp change in foreign reserves sparked by...
QUESTION 20 and output will In the short run, if the central bank decreases the money supply, the currency will O A. appreciate; rise B. depreciate; fall OC. appreciate; fall D. depreciate; rise Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro Search or type URL
15,16
Question Completion Status: QUESTION 15 With a fixed exchange rate, what would be effective stabilization policy during a recession? O Expansionary fiscal policy O Expansionary monetary policy O Contractionary fiscal policy O Contractionary monetary policy QUESTION 16 because it affects a component of aggregate demand. On the DD curve, exchange rate depreciation causes output to A. fall; investment B. fall; the current account o rise; consumption OD. rise; the current account QUESTION 17 shte in tame Inflation. The country's
7,8
Question Completion Status: QUESTION 7 Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. O remain unchanged. QUESTION 8 Which type of global exchange rate regime creates an asymmetry, with only one country able to conduct independent monetary policy? Floating exchange rates Gold standard Managed float Reserve currency system QUESTION 9 then country A's currency will be
In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate
5 and 6
QUESTION 5 In the long run, with variable real exchange rates, if American goods become less attractive relative to European goods, the dollar will experience a real and a nominal depreciation; depreciation O appreciation; appreciation O depreciation; appreciation O appreciation, depreciation QUESTION 6 and output to A short-run increase in government spending causes the currency to depreciate; increase appreciate; increase appreciate; decrease O depreciate; decrease QUESTION 7 it to save and submit. Click Save All Answers to...
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