By refusing to be time inconsistent, a central bank is ________ its reputation and ________ "policy credibility."
A) harming, losing
B) harming, gaining
C) investing in, losing
D) investing in, gaining
D
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When yield curves are flat
A) long-term interest rates are above short-term interest rates. B) short-term interest rates are above long-term interest rates. C) short-term interest rates are about the same as long-term interest rates. D) medium-term interest rates are above both short-term and long-term interest rates.
According to the classification in the text, which of the following is not an industrially advanced country (IAC)?
a. United Arab Emirates. b. Israel. c. Greece. d. All of the above are IACs. e. None of the above are IACs.
A decline in the interest rate will lead to an increase in the price of capital, supply of capital remaining constant
a. True b. False Indicate whether the statement is true or false
Which of the following can be considered as an automatic stabilizer in the economy?
a. Real exchange rate b. Real interest rate c. Unemployment insurance d. Money supply e. Disposable income