77)Fiscal policy is limited if...

a.The government runs a large primary budget deficit.

b.The country maintains a flexible exchange rate.

c.All of the options are correct.

d.Crowding out is a serious threat.

78)The decrease in the supply of foreign currency could result from...

a.A decrease in our demand for foreign assets.

b.An increase in our demand for foreign goods and services.

c.An increase in the sale of our assets to foreigners.

d.A decrease in foreign demand for our goods and services.

79)An economy's aggregate production function is often assumed to exhibit _____ returns to scale and _____ marginal product.

a.Decreasing; constant.

b.Decreasing; diminishing.

c.Constant; diminishing.

d.Constant; constant.