The impact of monetary policy on the exchange rate is emphasized by

A) supply-side economists.
B) Monetarists.
C) Keynesians.
D) rational expectations theorists.


C

Economics

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In a fixed exchange rate system

A) market forces and the country's stock of gold determine its exchange rate. B) a central bank affects the value of a currency by changing its foreign exchange reserves. C) market forces play a role in determining the fixed value of a currency. D) the International Monetary Fund determines exchange rates.

Economics

Erbia can produce either 18 pounds of oranges or 9 pounds of apples an hour, while Glassen can produce either 16 pounds of oranges or 4 pounds of apples an hour. Which of the following terms of trade between apples and oranges would allow both Erbia and Glassen to gain from specialization and exchange?

a. 1 pound of oranges for 0.2 pounds of apples b. 2 pounds of apples for 3 pounds of oranges c. 3 pounds of apples for 3 pounds of oranges d. 1 pound of apple for 3 pounds of oranges

Economics

If nominal GDP is $12,000 and the GDP deflator is 80, then real GDP is $15,000

a. True b. False Indicate whether the statement is true or false

Economics

Refer to the above table. If the product price increases from $3 to $4, then at the wage rate of $15, the firm will hire:

 

A.  2 workers

B.  3 workers

C.  4 workers

D.  5 workers

Economics