forced market rate. 10. If every country in the world adopted an open borders im
ID: 2438965 • Letter: F
Question
forced market rate. 10. If every country in the world adopted an open borders immigration policy, which of the following would happen? O Purchasing power parity would cease to hold. O Purchasing power parity would hold more closely O There would be no change in the degree of purchasing power parity O currencies would depreciate. 11. When a country dollarizes, its monetary policy is controlled by the O/ country's central bank country's federal govermment O u.s. Federal Reserve O country's central bank and the U.S. Federal Reserve together. 12. Expansionary fiscal policy financed by borrowing is more effective in affecting real growth in a closed economy than in an open D True O/ False 13. Figure: Foreign Trade Domestic supply $76 World supply Domestic demand 25 800 1.000 start: 11:08 AMExplanation / Answer
10. If every country in the world adopted an open borders immigration policy, then Purchasing power parity would hold more closely would happen. So correct option is B.
11. When a country dollarizes, its monetary policy is controlled by US Federal Reserve. So correct option is C.
12. It is not true that Expansionary fiscal policy financed by borrowing is more effective in effecting real growth in a closed economy than in an open economy.
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