The rational expectations school advocates the passive rule of a fixed-growth rate monetary policy because:
a. policy makers often do not have enough information to pursue an active policy
b. active intervention is required only if an economy is in recession.
c. a large bureaucracy can be eliminated by following the passive approach.
d. people render active policy ineffective by figuring out what it's going to be and taking actions to offset it.
e. they prefer to emphasize on an active fiscal policy.
d
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Foreign exchange rates are
A. price at which purchases and sales of foreign goods take place. B. movement of goods and services from one country to another. C. the price of one currency in terms of a second currency. D. differences between exports and imports.
What are the benefits and costs to a nation that participates in international trade? Do the benefits outweigh the costs or do the costs outweigh the benefits?
A shock that could trigger an expansion is a
a. large increase in oil prices b. financial crisis c. sudden cutback in military spending d. large decrease in oil prices e. sudden increase in the interest rate
In 2008 if the poverty line had been set lower, the poverty rate would have been ________.
Fill in the blank(s) with the appropriate word(s).