Foreign-exchange market interventions will always
A) lead to a decline in domestic interest rates relative to foreign interest rates.
B) lead to a rise in domestic interest rates relative to foreign interest rates.
C) lead to a decline in the domestic money supply.
D) alter a central bank's holdings of international reserves.
D
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Because the natural rate of unemployment is not known precisely, policymakers who use it as a guide for policy must be
A) less aggressive with policy changes than they would be if they knew the value of the natural rate. B) more aggressive with policy changes than they would be if they knew the value of the natural rate. C) ready to change policy more quickly. D) aware of other data.
In the second half of the twentieth century, the U.S. inflation rate was at its highest in the period from
A) 1960 to the early 1970s. B) the mid-1970s to the early 1980s. C) the mid-1980s to the early 1990s. D) 1990-2000.
The law of diminishing marginal returns
A) implies that the marginal product of labor must fall. B) requires using superior technology to increase output. C) means that total output will always fall. D) None of the above.
The inability of client to monitor the efforts made by his lawyer to defend his case is an example of the principal/agent problem
Indicate whether the statement is true or false