Individuals:
a. respond to incentives in predictable ways
b. decrease the level of an activity in response to negative incentives.
c. respond to positive incentives by increasing the level of activity.
d. do all of the above.
d
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The monetary policy strategy that does NOT allow the policy to focus on domestic considerations is
A) exchange-rate targeting. B) monetary targeting. C) inflation targeting. D) the implicit nominal anchor.
Which of the following is NOT a function of the Federal Reserve System?
A) providing for check collection and clearing B) holding deposits of member banks C) supervising member banks D) making loans to college students
Average variable cost will decrease if __________
Fill in the blank(s) with correct word
Which of the following is most unlikely to lead to a reversal of a country's trade pattern?
A. A proportionate increase in output in all the sectors of the economy B. International diffusion of technology C. Shifting tastes of the country's consumers D. Growth in the country's endowment of the input that is initially scarce