Which of the following statements accurately characterizes American trade during the Revolutionary War?
a. The American colonies actively traded with France, Holland and Spain until 1778, when trade was hampered by British blockades.
b. British blockades hampered the trade activities of first Northern and later Southern ports.
c. American trade remained below pre-war levels.
d. Decreases in imports led to increases in domestic production of textiles, beer and other products.
e. Both b and c are correct.
e. Both b and c are correct.
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Interest rate parity occurs when
A) interest rates are equal across nations. B) interest rate differentials are always maintained across nations. C) interest rates no longer affect the exchange rate. D) prices are equal across nations when exchange rates are taken into account. E) the interest rate in one currency equals the interest rate in another currency when exchange rate changes are taken into account. The figure above shows the demand curve for dollars in the foreign exchange market.
The economic impact of a change in spending, working through the multiplier, takes effect
A. immediately. B. very quickly, with a small number of rounds of spending. C. after a very long period of time. D. after multiple rounds of spending occur.