If the central bank of Orangeland pursues an expansionary monetary policy, ________
A) its labor supply will fall
B) the price level in Orangeland will fall
C) the demand for labor in the economy will increase
D) the interest rate in Orangeland will rise
C
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Some economists have suggested that network externalities result in consumers being locked into the use of products with inferior technologies
Economists Stan Leibowitz and Stephen Margolis have studied cases that have been cited as examples of this and found A) that consumers use products with inferior technologies when their prices are lower than products with superior technologies. B) that in all of these cases network externalities resulted in market failure. C) there is no convincing evidence that the alternative technologies were superior. D) consumers sometimes do become locked into the use of products with inferior technologies.
Prices set too low can actually be against the public interest.
Answer the following statement true (T) or false (F)
The most important driver for the global economy is likely to be:
Since the late 1990s, to prevent the yuan from appreciating against the U.S. dollar, the Chinese central bank
A. has purchased Chinese government bonds. B. has been trying to hold euros and British pounds as foreign assets. C. has been buying dollars and selling yuan in the foreign exchange market. D. has been selling foreign assets to replenish its dollar reserves.