The trade feedback effect refers to the tendency for an increase in the economic activity in one country to lead to a worldwide in economic activity, which then feeds back to the first country.

A cost-benefit analysis can be done to assess whether a nation should fix its exchange rate. Which of the following is NOT correct?

A) If market integration or symmetry increase, then the net benefits of a fixed exchange rate increase. B) If the net benefits are negative, economically speaking the nation should float. C) If the net benefits are positive, economically speaking the nation should float. D) If the net benefits turn negative, the nation should fix.

An increase in the nominal interest rate creates a ________ the money demand curve, and an increase in real GDP creates a ________ the money demand curve

A) movement down along; leftward shift of B) rightward shift of; movement up along C) movement up along; rightward shift of D) leftward shift of; rightward shift of