If the Fed can communicate that it will maintain a(n) ________, the long run nominal interest rate will remain ________
A) expansionary fiscal policy; low B) contractionary fiscal policy; high
C) contractionary monetary policy; low D) expansionary monetary policy; low
D
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Which of the following statements is TRUE about contestable markets?
A) There are significant barriers to entry. B) Firms earn large economic profits. C) Each firm faces a perfectly elastic demand. D) There are few firms in the industry.
Describe the criticisms about decision making at the IMF and the World Bank
Which types of policies are thought to reflect bias? What types of costs are not considered? What is the fundamental question critics raise about the operations of the international governmental economic institutions?
The impossible trinity includes ________
A) capital controls, a fixed exchange rate and an independent monetary policy B) free capital mobility, a flexible exchange rate and an independent monetary policy C) free capital mobility, a fixed exchange rate and an independent monetary policy D) free capital mobility, a flexible exchange rate and constraints on monetary policy
When the aggregate demand curve shifts to the right, intersecting the aggregate supply curve on its upward-sloping or vertical segment,
a. demand-pull inflation occurs. b. cost-push inflation occurs. c. stagflation occurs. d. deflation occurs. e. the shift pulls the price level down.