How might openness to the global economy influence the debate between policy activists and nonactivists?
What will be an ideal response?
An open economy is subject to shocks from abroad, making it hard for nonactivists to claim that macroeconomic stability will occur "naturally." Moreover, activists can argue that the coordination of policies across countries can improve stability for everyone.
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M1 is a measure of
A) money and includes both currency and checking deposits. B) liquidity and in which the most liquid asset is money. C) money and includes both savings deposits and currency. D) money and includes both savings deposits and money market mutual funds.
In the United States, the average level of educational attainment is approximately a
A. primary education. B. secondary education. C. higher education. D. graduate-level education.
The intersection between demand of US dollar and the supply of US dollar is known as
a. Inflation rate b. Exchange rate c. Price d. Quantity
A policy that directly targets the externality:
A. encourages innovation, which matches the goal to stop production of the externality. B. gives firms incentives to find different ways to do things, rather than pay for the right to create the externality. C. Both of the above statements is true. D. None of these statements are true.