For this question, assume that policy makers are pursuing a fixed exchange rate regime. Now suppose that a reduction in stock market wealth causes a decrease in consumption. Which of the following will tend to occur in a fixed exchange rate regime?
A) a reduction in Y
B) a reduction in the money supply
C) no change in the domestic interest rate
D) all of the above
D
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The full-employment and full-adjustment level of real Gross Domestic Product (GDP) in the economy is represented by
A) the horizontal line at the price level. B) the LRAS curve. C) the distance between the LRAS curve and the AD curve. D) the AD curve.
Suppose your expenses for this term are as follows: tuition: $10,000, room and board: $6,000, books and other educational supplies: $1,000
Further, during the term, you can only work part-time and earn $8,000 instead of your full-time salary of $20,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? A) $11,000 B) $17,000 C) $23,000 D) $29,000
Output per person must be ________ output per worker.
A. greater than or equal to B. no more than half the size of C. equal to D. less than or equal to
Explain the key issues presented by both sides of the Staples/Office Depot case in 1997.
What will be an ideal response?