When the Fed attempts to increase real GDP and employment by ________ its target for the federal funds rate, it is conducting ________ monetary policy
A) raising; expansionary
B) raising; contractionary
C) lowering; expansionary
D) lowering; contractionary
C
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Recall the Added Perspective on the prisoner's dilemma. When there is a prisoner's dilemma,
a. the prisoners stick to a joint strategy b. each prisoner's best strategy is not to confess c. the prisoners must make a once-and-for-all decision d. game theory does not apply e. there is no mutual interdependence
A worldwide slowdown in productivity growth occurred:
A. in the 1970s and 1980s. B. in the 1950s and 1960s. C. before 1950. D. in the 1960s and 1970s.
In the dollar-yen foreign exchange market, if Japanese companies sharply increase their importation of U.S. products, then the:
A. Supply of yen will decrease and the yen will appreciate B. Supply of yen will increase and the yen will depreciate C. Demand for yen will increase and the yen will appreciate D. Demand yen will decrease and the yen will depreciate
The theory of international exchange that holds that exchange rates are set so that the prices of ________ goods in different countries is ________ is the purchasing power parity theory.
A. similar; the same B. nondurable; negotiable C. durable; fixed D. different; the same