An economy that grows in world interdependence experiences
(a) growing trade on the basis of comparative advantage.
(b) more vulnerability to the business cycles of trading partners.
(c) wealth accumulation.
(d) all of the above.
(d)
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What would an economist assume about Osama Bin Laden and Barack Obama?
A) They pursue plans. B) Their plans are consistent with the public interest. C) They don't understand the economic way of thinking. D) Their demands for all scarce goods are very inelastic.
For this question, assume that the economy is operating in a fixed exchange rate regime and that perfect capital mobility exists. Given this information, which of the following will occur?
A) The domestic and foreign interest rates must be equal. B) The central bank cannot use monetary policy to affect domestic output. C) An expansionary fiscal policy will require that the central bank increase the money supply. D) all of the above E) none of the above