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updated 1 year ago
Category: Economics
Suppose a country’s total output is growing 10 percent per year, but its population is growing 11 percent per year. What will happen to living standards? LO28.2 a. They will rise. b. They will fall. c. They will remain the same.
Coursepivot March 11, 2023
Here is the full solution including the answer and explanation. Explanation b is correct When the growth rate of level of output is less than the level of population growth (View full solution)
updated 1 year ago
Category: Economics
last word If a country such as Greece that has joined the European Monetary Union can no longer use an independent monetary policy to offset a recession, what sorts of fiscal policy initiatives might it undertake? Give at least two examples
Coursepivot March 11, 2023
Explanation The Union EM comprises of a few countries that have a common monetary policy. Since, a common monetary policy is followed by the member countries, Country G that is (View full solution)
updated 1 year ago
Category: Economics
Suppose that a country has a trade surplus of $50 billion, a balance on the capital account of $10 billion, and a balance on the current account of −$200 billion. The balance on the capital and financial account is: LO27.2 a. $10 billion. b. $50 billion. c. $200 billion. d. −$200 billion
Coursepivot March 11, 2023
Here is the full solution including the answer and explanation. Explanation c is correct The balance of payment is in equilibrium if the summation of the current account and financial (View full solution)
updated 1 year ago
Category: Economics
Do all international financial transactions necessarily involve exchanging one nation’s distinct currency for another? Explain. Could a nation that neither imports goods and services nor exports goods and services still engage in international financial transactions? LO27.1
Coursepivot March 11, 2023
Explanation International transactions involve the sale and purchase of goods and services across nations. When people in one country buy goods from some other foreign country, they need to get (View full solution)
updated 1 year ago
Category: Economics
Suppose that a country follows a managed-float policy but that its exchange rate is currently floating freely. In addition, suppose that it has a massive current account deficit. Other things equal, are its official reserves increasing, decreasing, or staying the same? If it decides to engage in a c...
Coursepivot March 11, 2023
Explanation Under a floating policy, as there is no requirement to buy or sell the currency to change the exchange rate, the official reserves would not change. In order to (View full solution)