When most shocks to the economy are external, it is generally better to have
A) a flexible rate system.
B) a hard peg.
C) a soft peg.
D) a crawling peg.
A
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Which of the following statements is TRUE for the U.S.?
A) The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against losses up to $250,000. B) The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against losses up to $100,000. C) The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against losses up to $10,000. D) The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against natural disaster up to $100,000. E) The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against floods up to $100,000.
A game in which players collectively lose is known as a
A. zero-sum game. B. positive-sum game. C. negative-sum game. D. cooperative game.
If Brazil has a comparative advantage in the production of coffee compared to the United States, then
A. the United States has an absolute advantage in the production of coffee. B. Brazil can produce coffee at a lower opportunity cost than the United States. C. Brazil also has an absolute advantage in the production of coffee. D. the United States cannot produce coffee.
If monetary policymakers do not want the current inflation rate to increase, yet they observe increasing aggregate demand from higher government purchases, will they have to accept a higher inflation target? Explain.
What will be an ideal response?