Business cycles disappear when firms
A) hold nominal wages constant as nominal demand changes.
B) hold prices constant as nominal demand changes.
C) change prices proportionately with nominal demand changes.
D) change wages proportionately with nominal demand changes.
C
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A similarity between monopoly and monopolistic competition is that in both market structures
a. strategic interactions among sellers are important. b. there are a small number of sellers. c. sellers are price makers rather than price takers. d. there are only a few buyers but many sellers.
Suppose that more British decide to vacation in the U.S. and that the British purchase more U.S. Treasury bonds. Ignoring how payments are made for these purchases,
a. the first action by itself raises U.S. net exports, the second action by itself raises U.S. net capital outflow. b. the first action by itself raises U.S. net exports, the second action by itself lowers U.S. net capital outflow. c. the first action by itself lowers U.S. net exports, the second action by itself raises U.S. net capital outflow. d. the first action by itself lowers U.S. net exports, the second action by itself lowers U.S. net capital outflow.
In 1990, Britain joined the ERM. If the German Bundesbank increased interest rates, what will Britain have to do in order to maintain its exchange rate peg?
A) The British would be forced to increase their interest rates. B) The British would increase their money supply. C) The British would have to lower their interest rates. D) The British government would have to use expansionary fiscal policy.
The Federal Reserve____
a. operates independently from Congress and the President b. consists of representatives who are elected by the American people c. is an agency of the US Treasury Dept, which falls under the Executive Branch of govt d. all