Under a Fixed Exchange-Rate System and High Capital Mobility,an Expansion

question 23

Multiple Choice

Under a fixed exchange-rate system and high capital mobility,an expansion in the domestic money supply leads to:

• A) Trade-account deficit and a capital-account surplus
• B) Trade-account deficit and a capital-account deficit
• C) Trade-account surplus and a capital-account surplus
• D) Trade-account surplus and a capital-account deficit

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Definitions:

Enolate

An anion formed by the deprotonation of an alpha-hydrogen of a carbonyl compound, important in many organic reactions.

Haloform Reaction

A chemical reaction where a haloform is produced by the halogenation of methyl ketones in the presence of base.

2-Pentanone

An organic compound with the formula C5H10O, a ketone with a five-carbon chain, with the carbonyl group at the second carbon.

Hell-Volhard-Zelinsky Reaction

A chemical reaction used for the halogenation of carboxylic acids at the α position.