If the United States is viewed by foreigners as a great nation in which to invest, generating a large inflow of foreign investment, this will cause the United States to run a
a. deficit on the current account.
b. surplus on the current account.
c. deficit on the capital account.
d. deficit on the official reserve account.
A
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Which of the following explains why a monetary policy in a nation with an exchange rate peg, such as Denmark, would NOT be possible?
a. The nation must keep its import tariffs in sync with the import tariffs of the nation to which it pegs. b. The nation must keep its price level and nominal interest rate equal to the price level and nominal interest rate in the nation to which it pegs. c. The nation must keep its taxes and budget deficit in sync with taxes and budget deficit in the nation to which it pegs. d. The nation is no longer able to print its own money, since it is using the currency of the nation to which it pegs.
Of all the categories of unemployment, most unemployed persons fall into the category of
A) reentrant. B) new entrant. C) job leaver. D) job loser. E) none of the above