Considering only its direct effect on income, contractionary monetary policy tends to:
A. increase the exchange rate and decrease the trade deficit.
B. be ambiguous with respect to the trade deficit but decrease the exchange rate.
C. decrease the exchange rate and increase the trade deficit.
D. be ambiguous with respect to the exchange rate but decrease the trade deficit.
Answer: A
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Between 1960 and 2010, the labor force participation rate for women
A) increased until about 1996. B) decreased in most years. C) did not change. D) first rose sharply and then, after 1996, fell equally sharply. E) did not change until 1992, after which it generally increased.
Why is simply asking people how much they value a highway not a reliable way of measuring the benefits and costs?
a) Those who stand to lose have an incentive to exaggerate their true costs. b) Those who stand to gain have an incentive to tell the truth. c) Answers to the survey questions will always be downwardly biased. d) Not everyone asked will be using the highway.
Prices for industrial commodities such as steel rods or machine tools are:
A. heavy prices. B. sticky prices. C. auction prices. D. custom prices.
A reduction in money growth, holding all other factors constant, will cause
A) a reduction in seignorage. B) an increase in seignorage. C) no change in seignorage. D) an ambiguous effect on seignorage.