How are the coordination problem and timing problem of monetary policy similar?
a. Both deal with a lack of control over certain factors.
b. Both deal with foreign financial entities.
c. Both focus on fiscal and monetary interactions.
d. Both focus on nonbank institutions.
a. Both deal with a lack of control over certain factors.
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In November 2012, concern was raised about Spain's sovereign debt. Make use of a graph of the bond market to show how this would affect the price of Spanish bonds
What will be an ideal response?
Physical capital is distinguished from human capital because
A) physical capital refers to trained people. B) physical capital refers to equipment and machinery, whereas human capital refers to trained people. C) human capital refers only to day laborers. D) physical capital refers to trained people, whereas human capital refers to equipment and machinery.
Foreign investment in developing countries is limited for all of the following reasons except:
A. domestic saving in developing countries is too limited. B. developing countries try to control the nature of foreign investment in order to obtain greater benefits from it. C. developing countries lack the infrastructure necessary to attract foreign investment. D. it is often viewed in developing countries as exploitive.
If the price of a slice of pizza falls, Tom can
A) buy more pizza with his paycheck. B) buy more soft drinks with his paycheck. C) no longer afford pizza on his paycheck. D) Either A or B is possible.