Cooperation in an economy characterized by extensive specialization requires
A) a rapid exchange of accurate information.
B) flexible government controls.
C) high unemployment to stem inflation.
D) highly trained economists to "fine-tune" the economy.
E) price controls.
A
You might also like to view...
Suppose the government decided to ease monetary policy, then increase taxes. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output
A) lower; increase B) lower; decrease C) lower; have an ambiguous effect on D) have an ambiguous effect on; increase
Refer to the graph shown. An increase in U.S. income would shift:
A. S1 left and cause the euro to gain value. B. S1 right and cause the euro to lose value. C. D1 left and cause the euro to lose value. D. D1 right and cause the euro to gain value.
Figure 29-1
?
In Figure 29-1, which panel shows the effect of an expansionary monetary policy on the interest rate?
A. Panel (A) B. Panel (B) C. Panel (C) D. Panel (D)
The demand for money is given by Md = $Y (0.3 - i), where $Y = 100 and the supply of money is $20. a. What is the equilibrium interest rate? b. What is the impact on the interest rate if central bank money is increased to $25?
What will be an ideal response?