Multiple Choice
A benefit of automatic adjustment mechanisms is that they:
A) avoid the possibility of policy mistakes
B) avoid the time lags associated with adjustment policies
C) begin to operate as soon as balance of payments disequilibria develop
D) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The equilibrium level of national income in
Q3: In the real world,the automatic income,price,and interest
Q4: The income elasticity of imports is given
Q5: When S exceeds I,an open economy has
Q6: The foreign trade multiplier of nation 1
Q7: The S-I function rises because:<br>A)rising I are
Q8: In order to isolate the income adjustment
Q9: The marginal propensity to consume measures:<br>A)the ratio
Q10: The improvement in a nation's balance of
Q11: If MPS=0.2 and MPM=0.3,the foreign trade multiplier