Author Question: In a system of flexible exchange rates, lower inflation abroad would induce a. a rise in the U.S. ... (Read 137 times)

D2AR0N · **on:** Jun 30, 2018

In a system of flexible exchange rates, lower inflation abroad would induce

a. a rise in the U.S. exchange rate.
b. a fall in the U.S. rate of exchange.
c. a balance of payments deficit for the United States.
d. no change in U.S. exchange rates.

Question 2

Fogel's work (1964) on the economic impact of railroads is mostly written in response to

(a) Rostow's takeoff theory.
(b) Schumpeter's theory of railroads building ahead of demand.
(c) David's theory of path dependency.
(d) Engerman's theory of multiroute analysis.