The effectiveness lag is
A) the time it takes for policy makers to obtain data indicating what is happening in the economy.
B) the time it takes for policy makers to be sure of what the data are signaling about the future course of the economy.
C) the time it takes to pass legislation to implement a particular policy.
D) the time it takes for policy makers to change policy instruments once they have decided on the new policy.
E) the time it takes for the policy actually to have an impact on the economy.
E
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The supply of Russian rubles to the foreign exchange market derives from
a. surplus rubles created by a favorable balance of trade in Russia b. foreigners who exchange their currencies so they can buy French Russian goods c. foreign firms that invest in Russia d. the excess reserves in Russia held by foreign governments e. Russian people who exchange rubles for other currencies so that they can buy other countries' goods
Logrolling
A) is vote trading among elected officials. B) eliminates the influence of special interest groups. C) puts downward pressure on federal spending. D) b and c E) all of the above
Using purchasing power parity instead of exchange rates to calculate output will most likely:
A. lower the relative value of output in developing countries. B. show that prices in developing countries are higher than prices in developed countries. C. leave the relative value of output in developing countries unchanged. D. increase the relative value of output in developing countries.
A friend who is taking her first class in investments asks you why the regulatory bodies place so much emphasis on minimizing insider information if many of the potential problems associated with financial transactions stem from information asymmetry or a lack of information. How would you respond?
What will be an ideal response?