21. A trade surplus will be reflected as a A. Capital inflow. B. Capital in-stre
ID: 1220285 • Letter: 2
Question
21. A trade surplus will be reflected as a
A. Capital inflow.
B. Capital in-stream.
C. Capital outflow.
D. Capital inflight.
22. In the foreign exchange market when the currency appreciates the
A. Supply curve shifts to the right.
B. The demand curve shifts to the left.
C. The demand curve stays the same.
D. The supply curve shifts to the left.
23. The Phillips curve shows the relationship between unemployment and
A. Output.
B. GDP.
C. Inflation.
D. Income.
24. The short run Phillips curve is
A. Upward sloping.
B. Downward sloping.
C. Vertical.
D. Horizontal.
25. With respect to trade comparative advantage looks more so at
A. The inexpensiveness of resources.
B. The opportunity cost of resources.
C. The cheapness of resources.
D. The low cost of resources.
26. Given a required reserve ratio of 10% and an initial increase in deposits of
$100, the money supply will
A. Decrease by $100.
B. Decrease by $900.
C. Increase by $900.
D. Decline by $100.
27. If the fed buys securities for $1000 with a 10% reserve required ratio the
money supply will
A. Decrease by $9000.
B. Increase by $9000.
C. Fall by $9000.
D. Decline by $9000.
28. If the fed sells securities for $1000 with a 0.20 required reserve ratio the
money supply will
A. Increase by $40000.
B. Decrease by $40000.
C. Increase by $4000.
D. Decrease by $4000.
29. In the equation of exchange money velocity is
A. Variable.
B. Changeable.
C. Constant.
D. Non-constant.
30. When supply and demand interact to determine the value of a country’s
currency this is a
A. Fixed exchange rate.
B. Rigid exchange rate.
C. Flexible exchange rate.
D. Steady exchange rate.
Explanation / Answer
21. C)Capital Outflow
22.D) The supply curve shifts to the left
23. C) Inflation
24. A) Upward Sloping
25. B) The opportunity cost of resources
26. C) Increase by $900
27. B) Increase by $9000
28.C) Increase by $4000
29. A) Variable
30. A) Fixed exchange rate
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