Under perfect capital mobility, monetary policy has the largest impact on the income under:
a. floating exchange rates.
b. fixed exchange rates.
c. dollarization.
d. a currency union.
A
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A bond that is generally agreed to have higher default risk will experience all of the following EXCEPT:
A) declining demand B) declining supply C) higher yield D) lower price
If a firm wants to maximize profits, it should hire workers up to the point at which
A) total factor cost = total revenue. B) marginal factor cost = marginal revenue product. C) marginal utility = marginal cost. D) total social benefit = total social costs.
Banks are considered a safer place to deposit money now than they were prior to 1933 because
a. gold reserves have increased. b. reserve requirements are higher. c. the creation of the FDIC reduced the likelihood of bank runs. d. the commercial banks are no longer permitted to extend loans to the Federal Government.
Which of the following is a form of monitory policy?
A. Increasing the Money Supply faster than usual during recession. B. Cutting taxes during a recession C. Increase government's spending during recession D. All E. None