If two countries choose to fix the exchange rates among their currencies, then
A. the country with a current account surplus can decrease its money supply to delay the need for intervention.
B. there usually is more pressure on the government whose country has an overall payments surplus than on the government whose country has an overall payments deficit.
C. the country with a lower rate of inflation will eventually have large current account surpluses.
D. both countries will have an inflation rate of zero.
Answer: C
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The growth rate of real GDP is best represented as
A) (Contribution from capital) + (Contribution from labor) + (Contribution from total factor productivity) B) (Contribution from capital + Contribution from labor) / (Contribution from total factor productivity) C) (Contribution from total factor productivity) / (Contribution from capital + Contribution from labor) D) (Contribution from capital) × (Contribution from labor) × (Contribution from total factor productivity)
The federal funds market is the market for
a. loans from the federal government. b. loans from the Federal Reserve. c. government borrowing and lending. d. interbank lending. e. all of the above.