Under a floating exchange-rate regime with a low degree of capital mobility, an expansionary fiscal policy will most likely create pressure on
A. the central bank to expand the money supply.
B. the government to impose capital controls.
C. foreign central banks to expand their money supplies.
D. the domestic currency to depreciate.
Answer: D
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What is the formula you should use to determine a bank account's future value in one year?
A) Future value equals the present value multiplied by one plus the rate of interest in decimals. B) Future value equals the present value divided by one plus the rate of interest in decimals. C) Future value equals the present value plus the rate of interest. D) Future value equals the present value minus the rate of interest.