Federal Reserve Board Chairmen Paul Volcker, Alan Greenspan, and Ben Bernanke all have focused on which of the following as their main goal of monetary policy?
A) economic growth B) stability of financial markets
C) high employment D) price stability
D
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One reason China has been able to grow so rapidly even though its financial development is still in its early stages is
A) the high savings rate of around 40%. B) the shift of labor to the agricultural sector. C) the stringent enforcement of financial contracts. D) the ease of obtaining high-quality information about creditors.
Which of the following best describes aggregate expenditure?
a. C + I + G + (X ? M) b. C + S + G + (X ? M) c. C + I + G + (X + M) d. C + I + T + (X ? M) e. C + I + T + (X + M)
If the price of coffee increases from $2.50 per cup to $3.00 per cup and the quantity demanded goes down from 120 cups per week to 115 cups per week, the absolute value of price elasticity of demand in that price range is approximately
A. 2.34. B. 0.23. C. 4.35. D. 0.93.
The purchasing power parity theory is not a good explanation of how nominal exchange rates are determined in the short run because:
A. there is no evidence that low inflation is associated with less rapid nominal exchange rate depreciation. B. most goods and services are traded internationally and are standardized. C. most nominal exchange rates are fixed and foreign exchange markets do not bring the supply and demand for currencies into equilibrium. D. many goods and services are not traded internationally and not all internationally-traded goods are standardized.