Currently, in the United States, you can expect the discount rate to be
a. used often to change the money supply.
b. raised in periods of recession.
c. fixed at the bank rate.
d. adjusted to follow market rates of interest.
d
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What is the impact of expansionary fiscal policy on the exchange rate? Explain the process through which expansionary fiscal policy affects the exchange rate.
What will be an ideal response?
GDP is not a perfect measure of well-being; for example,
a. GDP incorporates a large number of non-market goods and services that are of little value to society. b. GDP places too much emphasis on the value of leisure. c. GDP fails to account for the quality of the environment. d. All of the above are correct.
Suppose each good costs $5 per unit and Megan holds $40 . What is the real value of the money she holds?
a. $40 . If the price of goods rises, to maintain the real value of her money holdings she needs to hold more dollars. b. 8 units of goods. If the price of goods rises, to maintain the real value of her money holdings she needs to hold more dollars. c. $40 . If the price of goods rises, to maintain the real value of her money holdings she needs to hold fewer dollars. d. 8 units of goods. If the price of goods rises, to maintain the real value of her money holdings she needs to hold fewer dollars.
Describe how Say's law can hold in a money economy, according to the classical economists