In a Fixed Exchange Rate Regime,assuming Perfect Capital Mobility,if China

question 13

Multiple Choice

In a fixed exchange rate regime,assuming perfect capital mobility,if China increases government spending to stimulate the economy,which of the following would happen in China?

• A) Capital account deficit
• B) A decrease in money supply
• C) Official settlement surplus
• D) A decrease in domestic output

---

Definitions:

Black-and-white

Visual media produced without color, using shades of gray, often for stylistic choices, cost reasons, or historical authenticity.

Sound Film

A movie that incorporates synchronized sound for dialogue, music, or sound effects, distinguishing it from silent films.

Sound-on-film

A technology used to record and reproduce sound that is synchronized with motion picture film, allowing for sound and picture to be combined on the same medium.

Phonofilm

An early sound-on-film system developed in the 1920s, which recorded sound directly onto film for synchronized playback.