10. An increase in government purchases will lead to ( )
A. a rise in its exchange rate and a fall in its output
B. a rise in both its exchange rate and its output
C. a fall in its exchange rate and rise in its output
D. a fall in both its exchange rate and its output
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9. The relative purchasing power parity says that the percentage change in the exchange rate between two currencies over any period equals the difference between ( )
A. the interest rates of two countries
B. the growth rates of two countries
C. the inflation rates of two countries
D. the ratios of trade to GDP of two countries
8. If the dollar interest rate is 2.5% , RMB interest rate is 3.5%, capital can move freely, and other things are equal, according to interest parity, ( )
A. RMB will appreciate
B. Dollar will appreciate
C. Dollar will depreciate
D. The exchange rate will be unchanged
7. The tuition of a student abroad should be recorded in ( )
A. the current account of balance payments
B. the financial account of balance payments
C. the capital account of balance payments
D. the account of statistical discrepancy in the balance payments
6. The optimum rate of tariff in a small economy is （ ）
A. Zero
B. greater than zero
C. less than zero
D. uncertain
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