The effectiveness of monetary policy is influenced by
A. The willingness of Congress to implement it.
B. How responsive the money supply is to changes in taxes.
C. The time it takes for lower interest rates to make investment spending more profitable.
D. Reports by the Congressional Budget Office.
Answer: C
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Which of the following characterizes stagflation?
A. A decrease in unemployment but an increase in inflation. B. An increase in both unemployment and inflation. C. An increase in unemployment but a decrease in inflation. D. A decrease in both unemployment and inflation.
Four main arguments have been made for trade protection: (1) the ______ argument; (2) the _______ argument; (3) the ________ argument; and (4) the ________ argument.
Fill in the blank(s) with the appropriate word(s).
Which of the following is a government response to asymmetric information?
A) product guarantees B) external product certification C) manufacturer's warranties D) government licensing
Under a system of flexible exchange rates, an increase in demand for a nation's currency in the foreign exchange market will: a. cause the nation's currency to appreciate
b. make it more expensive for the nation to import goods. c. cause the nation's balance on current account to shift toward a deficit. d. make it less expensive for foreigners to buy the nation's goods.