As with fiscal policy, monetary policy is also affected by the ________, _________ and ________ timing lags.
Fill in the blank(s) with the appropriate word(s).
recognition; decision; impact
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As foreign investors began to sell off investments they had made in Thailand, they traded in their baht for dollars. The result of this was
A) pressure for the value of the baht to rise. B) an increase in the equilibrium value of the baht. C) pressure for the value of the baht to decline. D) a decrease in the supply of the baht in foreign exchange markets.
If the price of gasoline increases and car dealers experience a decrease in demand for sport utility vehicles, then gasoline and sport utility vehicles are:
a. Substitutes b. Complements c. Inferior goods d. Unrelated goods
Table 14.1Monetary Aggregates of the U.S. Financial SystemItemAmountCash held by public$250 billionTransactions deposits$1,000 billionRequired reserves$150 billionExcess reserves$0 billionU.S. bonds held by public$1,000 billionAssume an original balance sheet: Refer to Table 14.1. If the Fed buys $10 billion in bonds from the public, all of the following are true except
A. The discount rate will rise. B. Additional increases in M1 will occur after the multiplier process. C. The public will still hold $990 billion worth of bonds. D. M1 will increase initially by $10 billion.
If the price of $1 is 1.67 Swiss francs, the price of a Swiss franc is
A) $0.33. B) $1.67. C) $2.00. D) $0.67.