Assuming imperfect capital mobility and a fixed exchange rate, then an expansionary monetary policy
a. results in a balance of payments surplus without a conflict between domestic goals and external balance.
b. results in a balance of payments deficit with a potential conflict between domestic goals and external balance.
c. will shift the LM curve to the left.
d. will have no effect on the balance of payments.
B
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The decrease in the value of the capital that results from its use and obsolescence is
A) depreciation. B) net investment. C) appreciation. D) deconstruction. E) gross investment.
The two groups that benefit the most from quotas are
A) the importers who have the right to import the restricted good and the domestic producers of the restricted good. B) the domestic consumers of the restricted good and the domestic producers of the restricted good. C) the domestic consumers of the restricted good and the foreign producers of the restricted good. D) the importers who have the right to import the restricted good and the domestic consumers of the restricted good.