Author Question: Which of the following is correct? When the actual amount supplied exceeds the actual amount ... (Read 87 times)

kamilo84 · **on:** Jun 30, 2018

Which of the following is correct? When the actual amount supplied exceeds the actual amount demanded, then:
a. Inventories rise, unemployment tends to rise, and prices tend to fall.
b. Inventories rise, unemployment tends to fall, and prices tend to rise.
c. Inventories fall, unemployment tends to rise, and prices tend to rise.
d. It is impossible for these two to be unequal.
e. The nation falls into an economic recession.

Question 2

Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, these flows would have had the following effect on the financial account and monetary base.
a. Financial account would rise and monetary base would fall.
b. Financial account would not change and monetary base would fall.
c. Financial account would fall and monetary base would not change.
d. Financial account would fall and monetary base would fall.
e. Financial account would fall and monetary base would rise.