Imperfect policy credibility implies that
A) traders may not believe that a central bank will do what it says.
B) a central bank may intentionally undermine its policies.
C) central bank authorities cannot be trusted.
D) currency traders will often try to undermine central bank movements.
A
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Firms in a small economy planned that inventories would grow over the past year by $300,000. Over that year, inventories actually grew by $400,000. This implies that
A) aggregate expenditure that year was less than GDP that year. B) aggregate expenditure that year was equal to GDP that year. C) there was a planned decrease in inventories that year. D) there was an unplanned decrease in inventories that year.
Globalization was much more pervasive in the 1800s than it is today
a. True b. False Indicate whether the statement is true or false
When the real exchange rate for the dollar appreciates, U.S. goods become
a. less expensive relative to foreign goods, which makes exports rise and imports fall. b. less expensive relative to foreign goods, which makes exports fall and imports rise. c. more expensive relative to foreign goods, which makes exports rise and imports fall. d. more expensive relative to foreign goods, which makes exports fall and imports rise.
Based on this consumer surplus graph, how many full glasses of iced tea can Emily buy and receive a consumer surplus?
a. one
b. two
c. three
d. four