In the short run/long run, a strong currency goes with:
a. a low interest rate/a high interest rate.
b. a high interest rate/a high interest rate.
c. a high interest rate/a low interest rate.
d. a low interest rate/a low interest rate.
Ans: c. a high interest rate/a low interest ate.
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Which of the following statements is (are) correct? The Federal Reserve
a. can, over the long run, roughly control the money supply by changing the monetary base to offset any undesirable changes in the money stock as a result of changes in currency holdings or excess reserve holdings. b. controls the money supply better in the long-run because of short-run uncertainty regarding the money multiplier. c. is in absolute control of the money stock at all times. d. Both a and b
If one job applicant truthfully reveals that they subscribe to an industry publication, the job applicant is
A) using the trade publication as a screening tool. B) using the trade publication as a signaling tool. C) using the trade publication as a form of statistical discrimination. D) using the trade publication for the wrong reasons.
If everyone in the economy correctly anticipates the inflation rate, the unemployment rate
A) will be the natural rate of unemployment. B) will be the cyclical rate of unemployment. C) will be inversely related to the expected inflation rate. D) will be positively related to the expected inflation rate.
Always Round Tire hires Plain Truth Advertising to write copy for its newspaper advertisements. Always Round has a demand for advertising of MB = 400 ?2S where S is the number of hours that Plain Truth works. If Plain Truth has a fixed supply cost given by MC = $150 per hour, what are the number of hours that Always Round purchases from Plain Truth? Now, if the copy writers are slackers and only deliver 100 hours of work each week, and if the each company must spend $1,250 in monitoring and bonding costs, what is the surplus and residual loss in this environment?
What will be an ideal response?