Fiscal policy affects the ________ market through changes in taxes and government spending.
A. money
B. goods
C. bond
D. federal funds
Answer: B
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Two reasons for an industrialized country to adopt an exchange-rate targeting regime are if the country ________ conduct successful monetary policy on its own,
and if the country wants to ________ integration of the domestic economy with its neighbors. A) cannot; encourage B) cannot; discourage C) can; encourage D) can; discourage
There are some special types of goods for which supply cannot change, irrespective of the length of time allowed for change, such as Beethoven symphonies. The price elasticity of supply for these goods is _____
a. infinite b. nonexistent c. negative d. zero e. unity
Inflation is a general and ongoing:
a. rise in the level of prices in an entire economy over time. b. lowering in the level of prices in an entire economy over time. c. rise in relative prices in an entire economy over time. d. lowering in relative prices in an entire economy over time.
The central prediction of the Hecksher-Ohlin theorem is that
a) international goods prices equalize under foreign trade b) comparative advantages depend on the abundance of factor inputs c) international trade disperses technology, speeding convergence d) all nations move beyond their production possibilities sets with free trade e) exchange rates adjust to ensure purchasing power parity