What is considered the most relevant interest rate when conducting monetary policy?

A. Short-term nominal interest rate
B. Long-term nominal interest rate
C. Annual nominal interest rate


A. Short-term nominal interest rate

Economics

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Refer to the figure above. A one unit increase in labor supply will lead to ________ in output in Country X than in Country Y

A) a smaller increase B) a smaller decrease C) a larger decrease D) a larger increase

Economics

What does the text suggest might be a possible advantage of being an economically "backward" nation?

A) Illiteracy B) The fact that many women have been systematically denied education, and have therefore learned to become very good homemakers, which is a prerequisite for a stable society C) The nation can adopt the advanced technologies of other nations without having to incur all the costs of research and development. D) If you invert the per capita GDP figures of the so-called "backward" countries, you find they are, in real terms, among the wealthiest nations in the world.

Economics

Morgan lives in San Francisco and likes to dine out. Morgan has noticed that prices at restaurants near popular tourist destinations in the city tend to be higher than at restaurants of the same quality in other neighborhoods. One reason for this is that:

A. tourists don't worry about money while on vacation. B. search costs are higher for people who are unfamiliar with the area. C. residents don't like to eat in restaurants frequented by tourists. D. restaurant meals are a small fraction of the total cost of a vacation.

Economics

According to the income-expenditure diagram, total production must always equal total

A. inventories. B. aggregate demand. C. wages, profit, rents. D. income.

Economics