To derive the external balance relationship under high capital mobility and floating exchange rates, an increase in government spending must be followed by（）
A. an increase in money stock to restore the balance of payments equilibrium
B. a decrease in money stock to restore the balance of payments equilibrium
C. a depreciation of the currency to restore the balance of payment equilibrium
D. a decrease in investment spending to restore the balance of payments equilibrium
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Fundamentally, the reason for exchange rate overshooting is that（）
A. the price levels do not react as quickly as the exchange rate
B. the LM curve reacts more slowly than the IS curve
C. exchange rate markets react more slowly than domestic price levels
D. there is a lag in the reaction of markets to fiscal policy
__ is（are） the profits that a government receives because the value of money printed is greater than the cost of printing it（）
A. Seignorage
B. Money revenue
Currency gain
D. Printing income
Optimal currency areas should have__ in order to succeed（）
A. high labor mobility
B. low labor mobility
C. imperfectly mobile capital
D. few policy externalities
The currencies most often used in international transactions are frequently called（）
A. vehicle currencies
B. seignorage
C. target currencies
D. competitive currencies
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