Modern Principles of Economics
4th Edition
ISBN: 9781319098728
Author: Tyler Cowen, Alex Tabarrok
Publisher: Worth Publishers
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Question
Chapter 32, Problem 2FT
Subpart (a):
To determine
The number of recessions since World War II.
Subpart (b):
To determine
How many recessions had
Subpart (c):
To determine
How many times the unemployment rate peaked after the recession ended.
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In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______
Group of answer choices
Raises the interest rate so that net exports must fall to maintain equilibrium in the goods market.
Cannot change the interest rate so that net exports must fall to maintain equilibrium in the goods market.
Cannot change the interest rate so income must rise to maintain equilibrium in the money market
Raises the interest rate, so that income must rise to maintain equilibrium in the money market.
Suppose a country with a fixed exchange rate decides to implement a devaluation of its currency and commits to maintaining the new fixed parity. This implies (A) ______________ in the demand for its goods and a monetary (B) _______________.
Group of answer choices
(A) expansion ; (B) contraction
(A) contraction ; (B) expansion
(A) expansion ; (B) expansion
(A) contraction ; (B) contraction
Assume a small open country under fixed exchanges rate and full capital mobility. Prices are fixed in the short run and equilibrium is given initially at point A. An exogenous increase in public spending shifts the IS curve to IS'. Which of the following statements is true?
Group of answer choices
A new equilibrium is reached at point B.
The TR curve will shift down until it passes through point B.
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Chapter 32 Solutions
Modern Principles of Economics
Ch. 32 - Prob. 1FTCh. 32 - Prob. 2FTCh. 32 - Prob. 3FTCh. 32 - Prob. 4FTCh. 32 - Prob. 5FTCh. 32 - Prob. 6FTCh. 32 - Prob. 7FTCh. 32 - Prob. 8FTCh. 32 - Prob. 9FTCh. 32 - Prob. 10FT
Ch. 32 - Prob. 11FTCh. 32 - Prob. 12TPSCh. 32 - Prob. 13TPSCh. 32 - Prob. 14TPSCh. 32 - Prob. 15TPSCh. 32 - Prob. 16TPSCh. 32 - Prob. 17TPSCh. 32 - Prob. 18TPSCh. 32 - Prob. 19TPSCh. 32 - Prob. 20TPSCh. 32 - Prob. 21TPSCh. 32 - Prob. 22TPSCh. 32 - Prob. 23CCh. 32 - Prob. 24CCh. 32 - Prob. 25CCh. 32 - Prob. 26CCh. 32 - Prob. 27CCh. 32 - Prob. 28CCh. 32 - Prob. 29CCh. 32 - Prob. 30CCh. 32 - Prob. 31C
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