1. With floating exchange rates, depreciation of a country's currency will, ceteris paribus, lead to: a. an increase in its net exports and net capital inflow. b. equal and offsetting changes in net exports and net capital inflow in either direction c. a fall in its net exports and net capital infow d. an increase in net exports and a fall in net capital inflow
1. With floating exchange rates,
a. an increase in its net exports and net capital inflow.
b. equal and offsetting changes in net exports and net capital inflow in either direction
c. a fall in its net exports and net capital infow
d. an increase in net exports and a fall in net capital inflow
2. Donald used to work full-time, but is now working only 5 hours a week so that he can spend more time learning Spanish. Which of the following is correct as measured by the national statistical office?
a. The under-employment rate has increased
b. The
c. The participation rate has decreased
d. The unemployment, participation and under-employment rates have all remained the same.
3. Ceteris paribus, the Australian dollar nominal exchange rate:
a. will rise if Australian interest rates fall
b. will fall if Australian inflation falls relative to inflation in our trading partners
c. will rise if Australia's trading partners income rises
d. will fall if Australian interest rates rise
4. The economic meaning of investment includes:
a. the purchase of corporate bonds that generate an interest return.
b. any kind of expenditure by firms which strategically enhances their future profitability.
c. the purchase of any asset with an expected monetary return, either through annual income streams or
d. any kind of expenditure by firms which strategically enhances their future profitability.
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