All else equal, compared to the case of a closed economy, monetary policy is ________ effective in an open economy with a ________ exchange rate.
A. more; flexible
B. less; real
C. less; nominal
D. more; fixed
Answer: A
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Refer to the scenario above. The opportunity cost per dollar of value added in the production of Good X by worker 2 is ________
A) $87.50 of value added in the production of Good Y B) $100 of value added in the production of Good Y C) $0.50 of value added in the production of Good Y D) $0.70 of value added in the production of Good Y
Which of the following is true?
A) When real GDP equals potential GDP, both equal nominal GDP. B) Nominal GDP fluctuates around real GDP. C) Real GDP fluctuates around nominal GDP. D) Potential GDP fluctuates around real GDP. E) Real GDP fluctuates around potential GDP.
Which of the following are characteristics of a proprietorship? I. Single owner II. Limited liability
A) I only B) II only C) both I and II D) neither I nor II
A decrease in the reserve requirement would:
A) decrease excess reserves and reflect an expansionary monetary policy. B) decrease excess reserves and reflect a contractionary monetary policy. C) increase excess reserves and reflect an expansionary monetary policy. D) increase excess reserves and reflect a contractionary monetary policy.