The openness of the economy and flexible exchange rates
A. reduce the effectiveness of both expansionary and contractionary monetary policies.
B. increase the effectiveness of a contractionary monetary policy, but reduce the effectiveness of an expansionary monetary policy.
C. increase the effectiveness of an expansionary monetary policy, but reduce the effectiveness of a contractionary monetary policy.
D. increase the effectiveness of both expansionary and contractionary monetary policies.
Answer: D
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A circular flow model shows the interrelationship between the ________ market and the ________ markets
A) household; goods B) household; factor C) business; household D) expenditure; income E) goods; factor
As output increases, average fixed cost gets smaller and smaller
Indicate whether the statement is true or false
All points within the production possibilities frontier are
A) unattainable. B) efficient. C) inefficient. D) profitable.
When supply changes there is a ____, and when the price changes there is a ____.
A. movement along the supply curve; shift in the supply curve B. shift in the supply curve; shift in the supply curve C. shift in the supply curve; movement along the supply curve D. movement in the quantity supplied; shift in selling plans E. change in the quantity supplied; change in supply