Answer the following questions ----

Question 1 If a reduction in the money supply leads to a rise in interest rates and lower output, in a fixed exchange Not yet answered rate system: Marked out of 1.00 P Flag question Select one: a.it promotes more imports of goods and services. b.it benefits both trade and capital accounts. c.it increases inflation. on d.it worsens both trade and capital accounts. Clear my choice Question 2 Capital deepening refers to: Not yet answered Marked out of 1.00 Select one: P Flag question a.a lower capital-labour ratio b.more capital per worker c.less capital per worker d.more capital and labourQuestion 12 An advantage of a flexible exchange rate system relative to a fixed system is that in a flexible rate system Not yet answered Marked out of 1.00 Select one: P Flag question a. the price of imported goods will be kept relatively low. b.inflation will be minimized by the "discipline of the balance of payments." c.balance of payments surpluses and deficits will be self-correcting. d.currency speculation will be reduced