A. interest rate adjustment
B. central bank intervention in the Forex
C. domestic wage and price adjustment
D. devaluation
Related Mcqs:
- Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
XA. wages and rents should fall in Country A
B. wages and rents should rise in Country A
C. wages should rise and rents should fall in Country A
D. wages should fall and rents should raise in Country A - The Maastricht criteria for entry to the EMU are that applicants should have ?
A. low inflation
B. low interest rates
C. stable nominal exchange rates
D. budget deficits and government debt under control
E. all of the above - The effect of inflation on the price competitiveness of a country’s products may be offset by ?
A. An appreciation of the currency
B. A revaluation of the currency
C. A depreciation of the currency
D. Lower inflation abroad - To try to overcome the free rider problem, the members of EMU signed ?
A. the stability and growth pack
B. the European solidarity packs
C. the exchange rate mechanism pact
D. the responsibility and growth pack - Which one of the following is not an argument in support of the UK joining the EMU ?
A. None of these arguments they are all arguments in support of the UK joining the UMU
B. The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates
C. The UK risks exclusion from the Euroland capital market with damaging consequences with damaging
D. The UK needs to be a member of the EMU in order to continue to attract such large share of foreign direct investment in EU countries - A rise in the real exchange rate will ________ the competitiveness of the domestic economy?
A. increase
B. reduce
C. do nothing to
D. None of the above - To help developing nations strengthen their international competitiveness many industrial nations have granted non-reciprocal tariff reductions to developing nations under the ?
A. international commodity agreements program
B. multilateral contract program
C. generalized system of preferences program
D. export-led growth program - The ratio of change in the equilibrium level of output to a change in some autonomous variable is the ?
A. automatic stabiliser
B. multiplier
C. elasticity coefficient
D. marginal propensity of the autonomous variable - If some gain and some lose as the result of a proposed change and it can be demonstrated that the value of the gains would exceed the value of the losses then the change is said to be ?
A. technically efficient.
B. inefficient.
C. potentially efficient
D. unequivocally Pareto optimal - The change in consumption that results when a price change moves the consumer along a given indifference curve is known as the ?
A. inferior effect
B. normal effect
C. substitution effect
D. complementary effect
E. income effect
