Which of the following is NOT true with fixed exchange rates and perfect capital mobility?
A. Sterilization is impossible.
B. Monetary policy is very powerful only in the short run.
C. Monetary policy is not effective in either the long run or the short run.
D. Fiscal policy is very powerful.
Answer: B
You might also like to view...
Investment in physical capital means
A. purchasing supplies. B. purchasing equipment and buildings. C. taking out loans. D. hiring more employees.
Capital resources include money and other financial assets
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true of a monopolist?
a. It can raise price without losing sales, since there are no competitors. b. At a given price, it can sell all of the output that it can produce. c. It is able to choose a price & output combination to the right of its demand schedule. d. At a given price it can sell only one particular output level.
Suppose a bet is placed on the outcome of the flip of a coin – if the coin comes up heads, you get $25 and if it turns up tails, you lose $25 . If you accepted this bet, does it imply that you are risk averse, risk neutral, or risk loving?
What will be an ideal response?