Hughes and Cain (2011) give some credit to which of the following factors for the 18601910 increase in the number of people employed, shorter work days and higher real incomes?
(a) A decrease in the number of immigrants
(b) A closed economy with no imports coming into or exports going out of the U.S.
(c) Mechanical power and capital accumulation
(d) All of the above
Question 2
Assuming imperfect capital mobility and a fixed exchange rate, then an expansionary monetary policy
a. results in a balance of payments surplus without a conflict between domestic goals and external balance.
b. results in a balance of payments deficit with a potential conflict between domestic goals and external balance.
c. will shift the LM curve to the left.
d. will have no effect on the balance of payments.
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