In using exchange controls, a nation attempts to eliminate a balance of payments deficit by:
A. Limiting its imports to the dollar value of its exports
B. Decreasing the nation's domestic price level
C. Limiting its exports to the dollar value of its imports
D. Appreciating the value of its currency
A. Limiting its imports to the dollar value of its exports
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If the long-run supply of rice is perfectly elastic, then
A) as people's incomes rise, the quantity of rice supplied decreases. B) as the price of corn falls, the quantity of rice demanded decreases. C) in the long run, a large rise in the price of rice causes no change in the quantity of rice supplied. D) in the long run, an increase in the demand for rice leaves the price of rice unchanged.
In the Classical system, the interest rate is determined by all of the following except
A) the thriftiness of the public. B) the money supply. C) the productivity of capital. D) investment.