Option to use expansionary fiscal policy

Assignment Help Business Management
Reference no: EM132405637

1. The option to use expansionary fiscal policy is limited when which of the following occurs? A. Continual budget surpluses leading to low public debt. B. Temporary budget deficits leading to low public debt. C. Continual budget deficits leading to high public debt. D. Temporary budget deficits leading to high public debt. E. Continual budget surpluses leading to high public debt.

2. Assume the Marshall-Lerner condition holds. Which of the following would occur as a result of a depreciation in the real exchange rate? A. An increase in domestic output. B. An increase in the quantity of imports. C. A deterioration of the trade balance. D. All of the above. E. None of the above.

3. In an open economy under flexible exchange rates, contractionary monetary policy in the short run will always cause: A. an increase in the exchange rate. B. a decrease in output. C. an increase in the interest rate. D. all of the above. E. both B. and C.

4. Changes in which of the following variables will cause the current nominal exchange rate to change? A. Future expected domestic nominal interest rates. B. Future expected foreign nominal interest rates. C. The future expected long-run nominal exchange rate, Eet+n . D. All of the above. E. None of the above.

Reference no: EM132405637

Questions Cloud

Prepare a research paper and present your research findings : Developing an understanding of a topic in management that interests you. If you choose a topic you care about, it will show.
Draw a generic aggregate supply and aggregate demand : Draw a generic Aggregate Supply (AS) and Aggregate Demand (AD) curve on a set of axes. Label your vertical axis and your horizontal axis
What is quantitative easing : 1. What is quantitative easing (QE)? 2. What are the benefits of this new monetary tool?
Calculating the size of the multiplier : What is the simple equation for calculating the size of the multiplier? If the MPC rises, what happens to the size of the multiplier?
Option to use expansionary fiscal policy : The option to use expansionary fiscal policy is limited when which of the following occurs?
According to ibbotson associates : According to Ibbotson Associates, 20 - year government bonds are on track to post annual returns of 30% by the end of 1995.
Write a C program to generate a sinusoidal wave : Write a C program to generate a sinusoidal wave from the VOUTA pin and the triangular wave from the VOUTB pin. Divide one cycle of the waveform into 60 segments
Measure of real interest rates : Why the value of the dollar and the measure of real interest rates tend to rise and fall together? What is the explanation behind this?
Tie down the price level to achieve price stability : How does the role of an anchor by the federal Bank works to tie down the price level to achieve price stability?

Reviews

Write a Review

Business Management Questions & Answers

  Differences between teleological and deontological ethics

One standard that is based on deontological ethics and explain how your choices fit the ethical theories. What are the basic differences between teleological and deontological ethics?

  Monopolistically competitive markets monopolistic

In what ways are monopolistically competitive markets "monopolistic?" In what ways are they "competitive?"

  What other countries might be potential markets

In 2009, Tata Motors introduced the Nano, a fuel-efficient, two-cylinder-engine automobile that has the lowest CO2 emission of all cars in India.

  What does the federal reserve bank

What does the federal reserve bank does and why is their existence is necessary?

  Harvard business case study

Harvard Business case study and pay attention to the qualitative and quantitative elements discussed in the case.

  Elucidate why you think the name you have chosen the brand

Elucidate why you think the name you have chosen is appropriate. Deliberate the pros as well as cons of your recommended.

  Level and manner of consumption

Identify other means by which the sustainable business can affect the level and manner of consumption. Place this in an ethical context and describe the pros and cons.

  What is a brand equity measurement system

Virtually every marketing dollar spent today must be justified as both __________________ and _________________ in terms of ___________ of marketing investment (ROMI). What is a brand equity measurement system? Why should marketers conduct a brand ..

  Can your spreadsheet handle inventory holding costs

How many of each product should Omega Manufacturing produce so as to maximize their profits? Build a linear programming spreadsheet model, and solve it using Solver.

  Employee unauthorized activities

Chris and Erica find themselves facing an ethical dilemma regarding an employee's unauthorized activities. Assuming you were in their position, discuss how you would address the problem to ensure that your final decision is fair and balanced, and ..

  Access information using today technology

Atkinson and Longman (2019) posit that we not only access information using today's technology but also contribute to the ever

  Explain the possible use of data mining

1. Explain the possible use of data mining, text mining, and Web mining. 2. Is it possible to use social analytics, social networks, and social network analysis? What are the relationships among them?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd