Monetary and price instability will
What will be an ideal response?
generate uncertainty, and encourage investors and businesses to move their activities to countries with a more stable monetary environment.
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Suppose the economy is producing at the natural rate of output. An open market purchase of bonds by the Fed will cause ________ in real GDP in the long run and ________ in inflation in the long run, everything else held constant
A) an increase; an increase B) a decrease; a decrease C) no change; an increase D) no change; a decrease
The total U.S. labor force excludes those
a. under age 20. b. under age 18. c. under age 16. d. over age 70.
Which of the following is an example of U.S. foreign portfolio investment?
a. Albert, a German citizen, buys stock in a U.S. computer company. b. Larry, a citizen of Ireland, opens a fish and chips restaurant in the United States. c. Nancy, a U.S. citizen, buys bonds issued by a Japanese bank. d. Dustin, a U.S. citizen, opens a country-western tavern in New Zealand.
When the government bans a good:
A. it will only be effective if it can be easily enforced. B. it doesn't need to change the trade-offs consumers face. C. it should get approval from the community before exacting the ban to be more effective. D. the cost of breaking the ban needs to be sufficiently low in order to be effective.