With flexible exchange rates, perfect asset substitutability, and perfect capital mobility, expansionary monetary policy will cause
A) income to rise, interest rates to fall, and the domestic currency to depreciate.
B) income to fall, interest rates to rise, and the domestic currency to appreciate.
C) income to rise, interest rates to remain unchanged, and the domestic currency to appreciate.
D) income to rise, interest rates to remain unchanged, and the domestic currency to depreciate.
D
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The government's budget deficit refers to the:
A. Total amount of debt that the government has incurred over the years B. Difference the nation's amount of exports and its total amount of imports C. Gap between high government spending and its lower tax revenues D. Decrease in the amount of government spending form one year to the next
Our money supply has _____ basic jobs to perform.
A. one B. two C. three D. four