The impossible trinity includes ________
A) capital controls, a fixed exchange rate and an independent monetary policy
B) free capital mobility, a flexible exchange rate and an independent monetary policy
C) free capital mobility, a fixed exchange rate and an independent monetary policy
D) free capital mobility, a flexible exchange rate and constraints on monetary policy
C
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Suppose we have an economy in which G = 1100, t = 0.26, Y = 3800, and YN = 4000. The natural employment deficit is
A) 60. B) 200. C) 840. D) 286. E) -112.
The real interest rate equals:
a. the nominal interest rate minus the inflation rate. b. the nominal interest rate plus the inflation rate. c. the inflation rate minus the nominal interest rate. d. none of the above.
Attempts by the government to reduce the rate of inflation often result in higher unemployment in the short run
a. True b. False Indicate whether the statement is true or false
In determining how much labor union workers will offer, the union concerns itself mainly with the
A. Marginal wage curve. B. Market wage curve. C. Labor demand curve. D. Marginal revenue product curve.