Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an) ?

Related Mcqs:

The exchange value of the U.S dollar is primarily determined by ?

A. the rate of inflation in the United States B. the number of dollars printed by the U.S government C. the international demand and supply for dollars D. the monetary value of gold held at Fort Knox, Kentucky...

For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from ?

A. the United States to Switzerland causing the dollar to depreciate B. the United States to Switzerland causing the dollar to appreciate C. Switzerland to the United States causing the franc to depreciate D. Switzerland to the United States causing the franc to appreciate...

According to the asset market approach increased investor confidence in the Mexican economy would cause the peso to ?

A. appreciate because of an increase supply of peso denominated assets B. depreciate because of an increased supply of peso denominated assets C. appreciated because of an increased demand for peso denominated assets D. depreciated because of an increased demand for peso denominated assets...

Exchange rate overshooting often occurs because ?

A. domestic prices adjust slowly to shifts in demand B. military spending during military conflicts C. elasticities are smaller in the long run than the short run D. elasticities are smaller in the short run than the long run...

Due to Japan’s high saving rate, suppose that the Japanese invest abroad. This investment may result in a/an _______ of the Japanese yen and therefore a for Japan?

A. appreciation; trade surplus B. appreciation; trade deficit C. depreciation; trade surplus D. depreciation; trade deficit...