When most shocks to the economy are external, it is generally better to have
A) a flexible rate system.
B) a hard peg.
C) a soft peg.
D) a crawling peg.
A
Economics
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Refer to the above figure. Suppose the relevant aggregate demand curve is AD2. If the government wants to use fiscal policy to close the existing gap, it should
A) increase government spending. B) increase taxes. C) increase the money supply. D) decrease taxes.
Economics
When net exports are negative,
a. exports are greater than investment b. depreciation is greater than net investment c. imports are greater than investment d. exports are greater than imports e. imports are greater than exports
Economics