To get a more accurate view of the size of countries’ economies, we first need to convert each country’s GDP to the dollar using ________ and then adjust for ________.Question 7AnswerSelect one:a.the exchange rate; fiscal policyb.fiscal policy; the exchange ratec.price level differences; the interest rated.the interest rate; the exchange ratee.the exchange rate; price level differences

To get a more accurate view of the size of countries’ economies, we first need to convert each country’s GDP to the dollar using ________ and then adjust for ________.

Fill in the Blank QuestionFill in the blank question.Under the , each country set a number of units of its currency equal to an ounce of gold, and the ratios of these units of gold equivalence established the exchange rate between any two currencies.

Suppose country A is a small open economy with free capital flows and a fixed exchange rate system, which of the statement is ture?A.With expansionary fiscal policy, country A's income  increases.B.With expansionary fiscal policy, country A's income  decreases.C.With expansionary fiscal policy, country A's exchange rate  increases.D.With expansionary fiscal policy, country A's exchange rate  decreases.

Two countries trade with each other regularly. Country A has a strong economy and buys large quantities natural resources from country B each year. Country B has a weaker economy, and $1 in country A's currency is worth about $50 in country B's currency.Which development would most likely result in country B's economy growing stronger?A.Country B's exchange rate becomes fixed, while country A's becomes flexible.B.The exchange rate changes to $1 of country A's money for $20 of country B's money.C.Country A's exchange rate becomes fixed, while country B's becomes flexible.D.The exchange rate changes to $1 of country A's money for $75 of country B's money.

In a small open economy with a floating exchange rate, how does the exchange rate respond to various fiscal and monetary policies?A.The exchange rate will depreciate if the government implements a contractionary fiscal policyB.The exchange rate will depreciate if the government implements an expansionary fiscal policyC.The exchange rate will depreciate if the central bank implements a contractionary monetary policyD.The exchange rate will depreciate if the central bank implements no monetary policy