The wartime demand for manufacturing goods directly impacted the economy in which of the following ways?
(a) Increased demand for factory workers
(b) Increased demand for imported goods
(c) Decreased demand for agricultural goods
(d) All of the above
(a)
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The downside (negative aspect) associated with a free and floating exchange rates is that
a. countries appreciate their rates so that the float is only upward b. they depend on trade agreements that can, and have been, broken c. whether they increase or decrease, it takes currency to float the rate d. arbitrage takes advantage of different opportunity costs e. it creates an uncertainty about future rates that can reduce trade
When a country experiences capital flight its
a. net capital outflow increases and its real exchange rate rises. b. net capital outflow increases and its real exchange rate falls. c. net capital outflow decreases and its real exchange rate rises. d. net capital outflow decreases and its real exchange rate falls.