Swiss experience in the 1980s evidences the ________
A) effectiveness of targeting monetary aggregates
B) need for discretion in the face of structural changes in the economy
C) value of fiscal policy over monetary policy
D) ascendancy of flexible exchange rate regimes over fixed exchange rate systems
B
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Monetizing the budget deficit
A) creates a full-employment deficit that exceeds the actual deficit. B) occurs when the Treasury sells bonds to businesses. C) helps stabilize the economy. D) leads to increases in the money supply.
According to Gordon which of the following statements about Friedman's fooling model is accurate?
A) The demand for labor depends on the nominal wage. B) As prices increase, firms will offer higher real wages; these higher wages will bring forth an increase in the supply curve of labor. C) The supply curve of labor depends on the expected real wage. D) All of the above statements are accurate.
The lessons of the Japanese recovery were most successfully repeated by
a. the Soviet Union. b. Argentina and Brazil. c. Taiwan, Singapore, and Hong Kong. d. Bulgaria and Romania.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is
A. -2/3. B. -3/4. C. -1.5. D. -20.