If a country chooses to have a monetary policy oriented toward domestic goals and the freedom of international capital movements, then
A) it can have a fixed exchange rate.
B) it cannot have a fixed exchange rate.
C) it cannot balance its current account.
D) it cannot have a fiscal policy oriented toward domestic goals.
E) it cannot control money supply growth.
B
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When there are currency depreciations or appreciations, how is the external wealth of a nation affected?
A) It rises (along with its GDP) when there is a depreciation and falls with an appreciation. B) It usually does not change because external wealth is related to gold and capital. C) The change in wealth depends on the exchange rates with the currencies in which the assets or liabilities are denominated. D) If all assets are domestic and all liabilities are foreign, wealth always rises when there is any kind of exchange rate shift.
Supply-siders' policy recommendations include:
A. lower tax rates, spending cuts, and increased government regulation. B. lower tax rates, lower resource prices, and decreased government regulation. C. lower tax rates, spending increases, and decreased government regulation. D. higher tax rates, spending increases, and increased government regulation.