1)Monetary policy to increase interest rates during high inflation is an example of;

a) Stabilisation policy

b) Discretionary economic policy

c) An automatic destabilizer

d) Policy lags

e) Nonsense

2)An anarchist system is a system based on:

a) The idea that all citizens pursue a common objective without the needs for formal laws and regulations

b) The pursuit of self-interest

c) The interest of stock markets

d) The individual interest of citizens

e) All of the above

3)

Which one of the following would cause an appreciation of the exchange rate (in each case assume that nothing else changes)?

a) Foreigners selling the domestic currency

b) Speculation that the interest rate will fall

c) A decrease in the interest rate

d) Domestic inflation increasing relative to inflation rates abroad

e) None of the above

4)A trade strategy based on exporting manufacturing has the following advantages:

a) Income elasticities for manufactures are higher than in the case of primary goods

b) The protectionist threat from the developed countries inhibit exports' expansion

c) Vulnerability to currency speculative attacks when capital controls are loose

d) All of the above

e) None of the above