The conventional monetary policy to fight inflation would be to
A. increase the rate of monetary growth.
B. decrease the rate of monetary growth.
C. run budget deficits.
D. run budget surpluses.
B. decrease the rate of monetary growth.
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Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries
a. True b. False Indicate whether the statement is true or false
An appreciation of the U.S. real exchange rate induces U.S. consumers to buy
a. fewer domestic goods and fewer foreign goods. b. more domestic goods and fewer foreign goods. c. fewer domestic goods and more foreign goods. d. more domestic goods and more foreign goods.
The purpose of the IMF is to:
A. provide developing countries with short-term loans and technical assistance. B. determine monetary and fiscal policy in developing countries. C. determine exchange rates for developing countries. D. buy and sell the currencies of developing countries in order to stabilize their value.
Which of the following examples reflects monopolistic competition?
a. Pineapple agriculture has just enough farms to meet society’s needs efficiently. b. The ski resort business has too many resorts to meet society’s needs efficiently. c. Tea agriculture does not have enough farms to meet society’s needs efficiently. d. The tourism industry fluctuates between too many and too few tours to meet society’s needs efficiently.