Starting from an initial long-run equilibrium, under the rational expectations hypothesis, an anticipated shift to a more expansionary policy will increase:
a. prices but not real output in the short run.
b. real output but not prices in the short run.
c. real output in the long run but not in the short run.
d. real output in both the long run and the short run.
a
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The major assets and liabilities of a bank are:
a. checkable deposits and total reserves, respectively. b. checkable deposits and gold, respectively. c. total reserves and checkable deposits, respectively. d. total reserves and excess reserves, respectively. e. checkable deposits and excess reserves, respectively.
Remittances refers to:
A. money paid to immigrants from hosting countries. B. money sent home from immigrants working abroad. C. the portion of money paid to immigrants that is not domestically taxed. D. the money immigrants get from the government once they immigrate to a nation.
A country that must inhibit imports should give preference to
A. quotas over tariffs because quotas are less likely to distort trade patterns between nations. B. tariffs over quotas because, unlike quotas, tariffs offer no special benefits to inefficient exporters. C. export subsidies over quotas or tariffs because export subsidies can protect a nation’s domestic producers. D. an embargo wherever possible because an embargo can serve as a political weapon in addition to being a “trade stopper.”
Suppose prices are quoted in dollars and transactions are conducted in pesos. The dollar serves as a
A) medium of exchange. B) store of value. C) unit of account. D) all of the above.