flat reduction of $ 2,500,000 in income taxes will increase disposable income by exactly $ 2,500,000. True or false

Adopting the Gold Standard for a country's economy implies that Money supply can be easily increased or decreased a. Interest rates become flexible b. Utilizing monetary policy tools becomes constrained C. Fiscal policy becomes flexible d.

Please discuss the impact of monetary policy tightening with regards to both unemployment and inflation with respect to both the short run and long run?

Monetary Policy is one the important drivers in growth & development of an economy. Illustrate at least four instruments/tools which are used universally in implementation of monetary policy.

In the paper by Degrauwe, The Governance of a Fragile Eurozone by Paul De Grauwe, he argues that the fundamental problem in the Euro-zone today is that countries cannot borrow in their own currencies.  Explain what he means by this and what the consequences of this are for Euro-zone countries currently in crisis. DeGrauwe argues that countries in the Eurozone monetary union can face both liquidity and solvency crises – problems that could not occur in a country that issues its own currency, like the UK.  Explain. Refer to his comparison of Spain to the UK.

When the central bank sells securities in the open market, which of the following sets of actions will happen? Group of answer choices Increase in interest rates, increase in budget deficit, and a trade surplus The money supply will increase, nominal interest rates will fall, increase in aggregate demand The money supply will decrease, nominal interest rates will increase, decrease in aggregate demand The money supply will increase, nominal interest rates will fall, decrease in aggregate demand

If the president of the central bank in this economy is convinced that there is no need for any monetary policy actions for the economy recover from the pandemic.  If his/her opinion is followed, explain whether you think the president’s opinion is good for the citizens of this economy?

1. BHP Billiton is a new global challenger. A) true B) false   2. Nonconvertible currencies are hard currencies. A) true B) false   3. The key focus of the World Bank is helping countries to stabilize foreign exchange.  A) true B) false   4. A deposit of Euros held in banks in Germany is considered Eurocurrency. A) true     B) false   5. A strategic global team focuses on the efficient operation of the business across the network. A) true B) false   6. Among entry strategies, low-control strategies require substantial resource commitment. A) true B) false   7. Contracting with intermediaries in the foreign market to perform export functions enables firms’ indirect exporting. A) true     B) false   8. Technical support outsourcing is part of business process outsourcing (BPO). A) true B) false   9. Assume entity A (in a country with high corporate income tax) and entity B (in a country with low corporate income tax) are two subsidiaries of Company ABC. Entity A sells parts to entity B.…

The US economy slowed down sharply in the latter half of 2000, and the actual recession started early in 2001. Monetary policy eased sharply throughout 2001, and for the first half of the year, fiscal policy did not change very much. Yet the dollar continued to appreciate in the first half of the year. It then fell sharply during the third quarter, but rebounded in the fourth quarter and returned to its highs in February 2002. It then fell 12% during the next five quarters. Why did the dollar remain strong throughout the recession, and why did it then decline sharply in 2002 even though fiscal policy became more expansive?  

QUESTION 1 Select all of the following that are true regarding international transactions, ceteris paribus: As a currency (FX) appreciates, inflation due to imports is reduced A modestly more contractionary monetary policy will appreciate a country's currency in FX As a currency (FX) appreciates, exports are reduced A reduction in long term fiscal policy investment in a country will appreciate the currency in FX A modest increase in a country's inflation rate will appreciate its currency in FX