Economics Mcqs — Test 42

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Question 1

Floating exchange rates are ____ in the short run?

Question 2

In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?

Question 3

The competitive advantage from a devaluation is likely to be offset by _______ and ________?

Question 4

In the short run the level of floating exchange rates is determined mainly by ?

Question 5

Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?

Question 6

When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ________?

Question 7

In a fixed exchange rate regime, the central the exchange rate ?

Question 8

Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?

Question 9

Within the circular flow of income, an increase in domestic income will tend to increase ?

Question 10

When capital mobility is perfect interest rate differentials will tend to be offset by ?