The member countries under the EMS (European Monetary System) let their currencies float jointly among themselves, but maintained a fixed exchange rate against the rest of the world
Indicate whether the statement is true or false
FALSE
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A person holding dollar deposits during the devaluation of the dollar would
A) enjoy a monetary gain. B) see the foreign currency value of dollar assets increase by the amount of the exchange rate change. C) shift their wealth into domestic investments. D) suffer a monetary loss and see the foreign currency value of dollar assets decrease by the amount of the exchange rate change. E) see no change in their investments.
Based on the graph showing the effective federal funds rate, the downturn in interest rates after the 2001 recession lasted ______.
a. a shorter time than most downturns
b. a longer time than most downturns
c. about the same time as most downturns
d. five years longer than any previous downturn
One basic difference between "land" and "capital" resources is that land is:
A. Manufactured while capital is man-made B. Unlimited while capital is limited C. Natural while capital is man-made D. Limited while capital is unlimited
Monetary policy has medium-run effects on which of the following?
A) the level of output but not its composition B) both the level and composition of output C) only the price level D) the level of output AND the price level E) none of the above