The assignment rule says that, with fixed exchange rates, fiscal policy should be used to stabilize the balance of payments and monetary policy should be used to stabilize the domestic economy.
Answer the following statement true (T) or false (F)
False
You might also like to view...
If disposable income rises from $15,000 to $20,000 and the marginal propensity to consume equals 0.9, then saving must increase by $500
a. True b. False Indicate whether the statement is true or false
A union may attempt to obtain stricter certification requirements or longer apprenticeships. These changes would raise workers' wages because they:
A. create unnecessary unemployment. B. shift in labor supply curve leftward. C. decrease the marginal product of labor. D. reduce management's use of featherbedding.
One form of "cost-push inflation," economists refer to are
A. attempts by labor to raise wages that result in increases in prices. B. rising prices due to excessive levels of government spending financed by open-market operations through the Fed. C. rising prices due to excessive levels of aggregate demand. D. the rise in total sales revenue attributable to price-tag changes rather than to real volume changes.
Refer to Exhibit 2-9. Who has the comparative advantage in the production of good A?
 ANSWER 5.png)