Which of the following is true? A. Exchange rate pass-through is a measure of the response of exchange rates to changes in imported and exported product prices. B. The Black Death contributed to a dramatic cumulative GDP fall of 29% in England and to a ‘flight-to-safety’ decrease in the price of gold by 8% between 1348 and 1351. C. Relatively low real interest rates at home should normally stimulate an outflow of capital seeking higher rates elsewhere. D. Capital flight—the rapid inflow of capital in opposition to or in fear of domestic political and economic conditions and policies—is one of the problems that capital controls are designed to control.
Which of the following is true? A. Exchange rate pass-through is a measure of the response of exchange rates to changes in imported and exported product prices. B. The Black Death contributed to a dramatic cumulative GDP fall of 29% in England and to a ‘flight-to-safety’ decrease in the price of gold by 8% between 1348 and 1351. C. Relatively low real interest rates at home should normally stimulate an outflow of capital seeking higher rates elsewhere. D. Capital flight—the rapid inflow of capital in opposition to or in fear of domestic political and economic conditions and policies—is one of the problems that capital controls are designed to control.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following is true?
A. Exchange rate pass-through is a measure of the response of exchange rates to changes in imported and exported product prices.
B. The Black Death contributed to a dramatic cumulative GDP fall of 29% in England and to a ‘flight-to-safety’ decrease in the price of gold by 8% between 1348 and 1351.
C. Relatively low real interest rates at home should normally stimulate an outflow of capital seeking higher rates elsewhere.
D. Capital flight—the rapid inflow of capital in opposition to or in fear of domestic political and economic conditions and policies—is one of the problems that capital controls are designed to control.
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