Spending on imports should get ________ GDP, and spending on exports should be ________.

When a government changes the official exchange rate target in a fixed exchange regime, there is a danger of

A) realignment pain. B) systemic risk. C) crowding out. D) a beggar-thy-neighbor effect.

Suppose that labor is mobile between countries A and B. If the relative demand for goods rises in country A, then labor can flow from ______________. It may be possible in this situation for countries A and B to __________________ which would help to___________________

A) country A to country B; fix the exchange rate between the two countries (or have a common currency); eliminate the risks associated with having a flexible exchange rate. B) country B to country A; impose trade restrictions upon one another; increase employment in country A C) country B to country A; fix the exchange rate between the two countries (or have a common currency); eliminate the risks associated with having a flexible exchange rate D) country A to country B; adopt flexible exchange rates; reduce the risk of exchange rate fluctuations