To counter a speculative attack on an overvalued currency, the monetary policymakers must ________ monetary policy and to fight a recession the monetary policymakers must ________ monetary policy.
A. ease; ease
B. tighten; tighten
C. tighten; ease
D. ease; tighten
Answer: C
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If ________, net exports are zero
A) imports equal transfer payments B) imports exceed exports C) exports exceed transfer payment D) exports equal imports
In a long-run equilibrium, the marginal firm has
a. price equal to minimum marginal cost. b. total revenue equal to total cost. c. accounting profit equal to zero. d. All of the above are correct.
If a country removes an import quota, what happens to its exchange rate, its exports, and its net exports?
Suppose the economy is at a point below its physical production possibilities frontier but above its institutional production possibilities frontier. In response to this situation, Keynesian economists may propose that government enact __________ fiscal policy to correct this __________ gap by __________ government expenditures
A) expansionary; inflationary; increasing B) contractionary; inflationary; decreasing C) expansionary; recessionary; increasing D) contractionary; recessionary; decreasing E) contractionary; inflationary; increasing