If exchange rates are floating, an expansionary fiscal policy in the United States will cause the dollar to ________ relative to other currencies and cause net capital outflows to ________

A) appreciate; increase
B) appreciate; decrease
C) depreciate; increase
D) depreciate; decrease

B

Economics

You might also like to view...

The figure shows the market for books before and after a sales tax is introduced. The tax on books is ________ a book, buyers pay ________ of tax per book, and the government's tax revenue is ________ a week

A) $1.20; $0.80; $128 B) $0.80; $1.20; $12 C) $0.40; $0.40; $4 D) $1.20; $0.80; $12

Economics

In the actual economy, goods and services are purchased by

a. households, but not firms or the government. b. households and firms, but not the government. c. households and the government, but not firms. d. households, firms, and the government.

Economics