Macroeconomics (6th Edition)
Macroeconomics (6th Edition)
6th Edition
ISBN: 9780134106229
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 14, Problem 14.1.6PA
To determine

Swapping goods and services in a cashless transaction.

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Briefly discuss the distinction between capital markets and money markets. In your discussion, clearly point out which of the two is commonly used by governments in raising finance aimed at funding capital projects like roads infrastructure.
58)In early 2017, according to the Wall Street Journal President Donald Trump said: "the U.S. dollar 'is getting too strong' and he would prefer the Federal Reserve keep interest rates low." The article also quoted the president as saying: "It's very,very hard to compete when you have a strong dollar…” What did President Trump mean by a "strong dollar"? Select one: a. This occurs when U.S. prices in dollars are higher than prices in foreign currencies. b. A "strong dollar" is when it takes more units of a foreign currency to buy a dollar. c. This would mean that the value of a dollar in terms of foreign currencies is stable. d. A "strong dollar" means that other currencies can be traded for more dollars.
What are four reasons a country might have for borrowing money? What are the alternative solutions for countries to stop or avoid borrowing money?
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