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.Management Sciences
Category: Macroeconomic Issues and Analysis
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
Within the circular flow of income, an increase in domestic income will tend to increase ?
A. exports
B. taxes
C. inventories
D. imports
Government policies that focus on increasing production rather than demand are called ?
A. fiscal policies
B. monetary policies
C. supply-side policies
incomes policies
Which of the following is not a macroeconomic issue ?
A. Unemployment
B. Inflation
C. The wages paid to footballers
D. Economic growth
If currency dealers expect the value of the pound to fall, the exchange value will tend to ?
A. depreciate
B. not be affected
C. fluctuate more than it would do therwise
D. appreciate
As prices rise. People will want to keep more money as cash and in bank accounts This is called ?
A. real balance effect.
B. cash ratio.
C. money illusion.
D. menu costs of inflation.
The record of country’s imports and exports of goods and services is called its ?
A. visible trade balance
B. balance of trade
C. balance of payments on current account
D. balance of payments.
The main features of the European Monetary system are ?
A. The ECU
B. currency swap agreement between member
C. the exchange rate mechanism
D. all of the above
If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?
A. will remain the same
B. will decrease
C. will increase
D. could either increase of decrease
Floating exchange rates are ____ in the short run?
A. stable
B. predictable
C. volatile
D. depreciating
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