International capital flows strengthen
A. monetary policy and have no effect on fiscal policy.
B. monetary policy but weaken fiscal policy.
C. monetary and fiscal policy.
D. fiscal policy but weaken monetary policy.
Answer: B
You might also like to view...
In the short run ________
A) the more flexible wages and prices are, the more inflation responds to the output gap B) the more sticky wages and prices are, the more difficult to tell the difference between the short run and long run aggregate supply curves C) if wages and prices are sticky, aggregate output is always at its potential level D) all of the above E) none of the above
Following their profit maximizing motivation, firms will differentiate their products in a way that maximizes welfare
Indicate whether the statement is true or false
Long lines and gasoline shortages during the 1970's can be attributed completely to the decision by OPEC to raise crude oil prices
a. True b. False Indicate whether the statement is true or false
When the federal government becomes heavily involved in programs that favor well-organized business interest at the expense of others, the expected result is
a. more rapid economic growth, because programs of this type are generally productive. b. a reduction in rent seeking activities because political decision-makers will want to promote smaller, innovative firms rather than large firms that are a major source of political contributions. c. less innovation because political decision-makers will tend to favor older firms with a stronger record of providing political support rather than newer, innovative start-up firms. d. a decline in the competitiveness of elections, because politicians will find it more difficult to raise campaign contributions.