A. crowds out imports
B. crowds out public consumption
C. crowds out exports
D. reduces the budget deficit
Related Mcqs:
- Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?
A. depreciation
B. appreciation
C. fall
D. devaluation - Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ?
A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
B. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar
C. decrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
D. decrease in the demand for foreign currency and increase in the supply of foreign currency and a appreciation in the dollar - Under a system of floating exchange rates relatively high productivity and low inflation rates in the United States results in a (an) ?
A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
B. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar
C. decrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
D. decrease in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar - What is called the sequence of economic activity which is typically characterized by recession, fiscal recovery, growth and fiscal decline ?
A. Economic Cycle
B. Business Cycle
C. Complete Cycle
D. Cycle Business - In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?
A. decrease; depreciate
B. decrease; appreciate
C. increase; depreciate
D. increase; appreciate - Under a system of floating exchange rates the pound would depreciate in value if there occurs ?
A. Price inflation in the United States
B. an increase in U.S real income
C. a decrease in the British money supply
D. falling interest rates in Britain - Under a system of floating exchange rates there is a general tendency for ?
A. exchange rates to be insensitive to the differential rates of inflation between countries
B. the currencies of relatively high-inflation countries to depreciate
C. the currencies of relatively high inflation countries to appreciate
D. the currencies of relatively low inflation countries to depreciate - Under managed floating exchange rates if the rate of inflation in the United States is less than the rate of inflation of its trading partners the dollar will likely ?
A. appreciates against foreign currencies
B. depreciates against foreign currencies
C. be officially revalued by the government
D. be officially devalued by the government - A fiscal expansion in the UK ?
A. has no predictable effect on the price of the pound sterling?
B. does not affect the price of the pound sterling
C. tends to appreciate the pound sterling
D. tends to depreciate the pound sterling - Which of the following is not involved with fiscal policy ?
A. Income tax
B. National insurance
C. VAT
D. Interest insurance
