If the target exchange rate is 100 yen per dollar and the current exchange rate is 90 yen per dollar, the Fed will
A) sell dollars and the demand for dollars will increase.
B) sell dollars and the demand for dollars will decrease.
C) buy dollars and the demand for dollars will increase.
D) buy dollars and the demand for dollars will decrease.
C
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As a method of resource allocation, force
A) is not important. B) plays a crucial negative role. C) plays a crucial positive role. D) plays a crucial role for both good and ill.
Over the period 1960-1990,
a. South Korea had a higher growth rate than the United States because it had a higher ratio of investment to GDP. b. the United States had a higher growth rate than South Korea because it had a higher ratio of investment to GDP. c. South Korea had a higher growth rate than the United States even though it had a similar ratio of investment to GDP. d. the United States had a higher growth rate than South Korea even though it had a similar ratio of investment to real GDP.
Professor Tabarrok suggests that monetary policy is both an art and a science because of the complexity of answering all of the following questions EXCEPT:
A. how to use monetary policy tools. B. where to apply monetary policy tools. C. when to use monetary policy tools. D. which monetary policy tools to use.
Which of the following is an example of fiscal policy?
a. a change in taxes that affects investment spending b. a change in government spending on goods and services c. a change in taxes that affects consumer spending d. all of the above