Answer to Question #210582 in Macroeconomics for Anisha Kumar

Question

True or False Questions

Question 23

Under perfect capital mobility, interest rates (i_d, i_f) can permanently vary, if monetary policy is tightened.

Select one:

True

False

Question 24

The degree of capital mobility could be impacted by differences in income tax regimes.

Select one:

True

False

Question 25

A fixed exchange rate is best for small economies like Fiji, at least during the COVID19 crisis

Select one:

True

False

Question 26

A devaluation can cause inflation and lead to a raise in external debt.

Select one:

True

False

Question 27

A BOP surplus will increase foreign reserves is the domestic economy operates under flexible exchange rate system.

Select one:

True

False

Question 28

If nominal GDP was 1500 and real was 1450, the implicit GDP deflator would imply a moderate rate of inflation of about 3%.

Select one:

True

False

Answer 1

23:False

24:True

25:True

26:True

27:True

28: False