Permitting the exchange rate to float
A) automatically reduces the real income effects of volatility in aggregate expenditures.
B) will result in dramatic shifts in the balance of payments.
C) will induce locomotive effects between most trading partners.
D) will result in the complete crowding-out effect of fiscal spending.
A
Economics
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Wheat is used to produce cereal. When the price of wheat falls, the
A) demand for wheat increases. B) supply of wheat decreases. C) supply of cereal increases. D) demand for cereal increases. E) demand for cereal decreases.
Economics
A deliberate change in the government's deficit
A) constitutes discretionary fiscal policy. B) leads to automatic stabilization. C) acts as a drag on the economy. D) is implemented by the Fed.
Economics