The efforts to revive the economy in 2009 through the stimulus package is an example of
A. the traditional tools of monetary policy.
B. discretionary fiscal policy.
C. new tools of monetary policy.
D. all of the options are correct.
Answer: B
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Mutual funds give individual investors a low-cost way to diversify
Indicate whether the statement is true or false
Why does a prisoner's dilemma lead to a noncooperative equilibrium?
A) because players must choose from a limited number of non-dominant strategies B) because each player is uncertain how other players will play the game C) because each player had agreed before the game started to minimize the harm that he can inflict on the other players D) because each rational player has a dominant strategy to play a certain way regardless of what other players do
Under a fixed exchange rate system, at low domestic real interest rates the demand for domestic currency ________, so the central bank ________ foreign-exchange reserves
A) increases; acquires B) increases; loses C) decreases; acquires D) decreases; loses
Using hindsight to judge whether buying insurance was a good idea or not:
A. is the only way to properly measure the true cost of the insurance and its benefit. B. is not a good idea; you have to measure the decision considering the information available at the time. C. can prove that a good decision at the time was really not worth it. D. is commonly used by people who wish to buy insurance in the future.