Because there is a trade-off between inflation and unemployment in the short run,
A. lower unemployment will typically cause inflation to fall.
B. policies designed to reduce unemployment will typically set off a recession.
C. policies designed to reduce inflation will cause unemployment to fall as well.
D. higher inflation will generally be associated with higher unemployment.
E. lower inflation will generally be associated with higher unemployment.
Answer: E
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Under the rational expectations hypothesis, if wages adjust rapidly to new information about intended policy actions, monetary policy can have an effect
A) in the long run, but not the short run. B) only in the short run and only if the policy is unanticipated. C) in both the short and the long run. D) only in the long run and only if the policy is fully anticipated.
Portfolio investment refers to a form of financial investment that crosses international boundaries, and thus requires an exchange of currency
a. True b. False Indicate whether the statement is true or false
In the first quarter of 2015 the U.S. had a trade deficit. In the first quarter of 2016 exports fell and imports rose. According to these numbers what happened to net exports?
The percentage of Head Start enrollees in homes headed by single men is
A. 10%. B. 35%. C. 50%. D. 1%.