Author Question: Under a fixed exchange rate system, if the inflation rate of the United States is less than the ... (Read 54 times)

joe

  • Hero Member
  • *****
  • Posts: 627
Under a fixed exchange rate system, if the inflation rate of the United States is less than the inflation rate of other nations, the
 
  A) United States will develop a trade surplus. B) dollar will appreciate.
  C) United States will develop a trade deficit. D) dollar will depreciate.

Question 2

An increase in the marginal tax rate
 
  A) decreases the expenditure multiplier but cannot make it negative.
  B) has no effect on the expenditure multiplier.
  C) can either increase or decrease the expenditure multiplier.
  D) increases the expenditure multiplier.
  E) decreases the expenditure multiplier and can make it negative.



amandalm

  • Sr. Member
  • ****
  • Posts: 306
Answer to Question 1

A

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

For a complete list of videos, visit our video library