When the Federal Reserve uses open-market operations to raise the Federal funds rate several times over a year, it is pursuing:
a. A Taylor rule policy
b. An expansionary money policy
c. A prime interest rate policy
d. A restrictive money policy
d. A restrictive money policy
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The textbook presents the movement of rush-hour traffic as an example of social
A) chaos. B) competition. C) conflict. D) confusion. E) cooperation.
A baseball player who has signed a long-term contract with his club and then constantly says he is injured and cannot play is an example of ________
A) the principal-agent problem B) marginal returns to work C) the law of diminishing returns D) inefficient hiring practices
In Chapter 11, depreciation is assumed to be
A) a fixed proportion of real GDP. B) a fixed proportion of the capital stock. C) a fixed absolute amount. D) zero. E) a fixed proportion of the capital-labor ratio.
With a fixed exchange rate, an increase in the domestic price level will, for a constant foreign price level,
a. increase exports and decrease imports. b. make foreign goods relatively more expensive to U.S. citizens but U.S. exports will be relatively cheaper to foreigner buyers. c. increase both exports and imports. d. make foreign goods relatively cheaper to U.S. citizens but U.S. exports will be more expensive to foreign purchasers.