IB Economics Unit 4.3: Global Economy - Exchange Rates & Balance of Payments (id

本题目来源于试卷: IB Economics Unit 4.3: Global Economy - Exchange Rates & Balance of Payments，类别为 IB经济学

[单选题]
Select from the table be)wh /khbdi(/mm.l n.z low th fkbzcz z 93**k:qoubg,0kr5ng0c) eh e appropriate transmission mechanism of a contractionary monetary policy which involves raising interest rates to achieve an extqfog hn *kk0ze35 rukz)z 0g:c *9b,bcernal balance.

	Aggregate Demand	Real GDP	Net Exports
A.	Decreases	Decreases	Increase
B.	Increases	Increases	Decrease
C.	Decreases	Decreases	Decrease
D.	Increases	Increases	Increase

A.
B.
C.
D.


参考答案:  A


本题详细解析:

A

$\underset{‾}{\text{Key idea}}$:
An external balance refers to a sustained situation where imports of goods and services are roughly equal to exports of goods and services.

$\underset{‾}{\text{Explanation}}$:
Choice A is correct as contractionary monetary policy in the form of higher interest rates has the following effects:

• disincentivises borrowing by households and firms, lowering consumption spending and domestic investment
• lowering aggregate demand and real GDP
• decreasing imports as AD falls, improving the trade balance
• lowers the average price level, lowers the relative price of exports, increases the relative price of imports, improving the trade balance
• as the trade balance improves, the current account improves and moves toward an external balance

Choices B and D are incorrect because contractionary monetary policy shifts the aggregate demand curve to the left, lowering real GDP in equilibrium.

Choice C is incorrect because although both aggregate demand and real GDP will indeed decrease, it is inaccurate that net exports will also fall, leading to a deterioration of the external balance.

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