If a country has a balance of payments deficit and wishes to maintain the fixed value of its currency, it will generally
a. sell its own currency for foreign currencies.
b. buy its own currency with foreign reserves.
c. decrease taxes to increase domestic disposable income.
d. increase the money supply to keep interest rates down.
b
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If the marginal utility Ida Mae receives from eating chicken wings is negative then
A) her total utility from eating chicken wings has fallen. B) Ida Mae definitely does not like chicken wings. C) her total utility has risen, but by less from the last chicken wing than from the next to last chicken wing. D) her total utility from eating chicken wings is negative as well.
A country such as the United States, which has a low saving rate and attractive investment opportunities, will tend to experience a long-term
a. inflow of capital and a current account surplus. b. inflow of capital and a current account deficit. c. outflow of capital and a current account surplus. d. outflow of capital and a current account deficit.