Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is the most appropriate policy to create a surplus in the capital account? A. Decrease government spending B. Increase money supply.

image text in transcribedimage text in transcribedimage text in transcribed
Which of the following is the most appropriate policy to create a surplus in the capital account? A. Decrease government spending B. Increase money supply. C. Decrease government spending and increase money supply. X D. Increase the central bank's official reserves E. Increase government spending. X Incorrect Question 4Question Which of the following would not be counted in the U.S. balance of payments current account? A. A foreign country's purchase of a new jet fighter aircraft from a U.S. aircraft company. B. A wealthy Italian purchases numerous rosebushes in the United States for his villa. O C. Income paid to an American oil engineer acting as an adviser to Middle Eastern countries in the area of petroleum extraction. X O D. A $50 dividend check a U.S. citizen receives from ownership of shares of stock in a German corporation. O E. A U.S. company's purchase of newly constructed factory buildings in Mexico.A contractionary fiscal policy will: OA. increase interest rates and decrease the value of a country's currency, leading to a smaller trade deficit decrease interest rates and decrease the value of a country's currency, eading to a larger trade surplus. XO C. increase interest rates and increase the value of a country's currency, leading to a larger trade deficit D. increase interest rates and decrease the value of a country's currency, leading to a smaller trade surplus. E. increase interest rates and increase the value of a country's currency, leading to a larger trade surplus. X Incorrect

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economy Of Cities

Authors: Jane Jacobs

1st Edition

039470584X, 9780394705842

More Books

Students also viewed these Economics questions