All of the following impact the effectiveness of Fed policy except
A. Expectations about the economy in the future.
B. Trade Unions.
C. Global sources of money.
D. The time lag between when interest rates change and when investment changes.
Answer: B
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Consider a small open economy in equilibrium. What happens to the real interest rate, national saving, investment, and the current account balance in equilibrium in each of the following situations (each taken separately)
Explain which curve shifts and why, and show a diagram explaining your results. (You may assume that none of the shocks is large enough to significantly affect labor supply or labor demand significantly.) (a) wealth declines (b) business taxes decline (c) income rises temporarily
In 2003, Japan restricted imports of beef from the United States because of fear of mad cow disease. This is an example of
a. an anti dumping measure. b. protecting an infant industry. c. a voluntary restraint measure. d. a technical barrier.
According to the above table, net domestic product is
A. $13,092 billion. B. $12,603 billion. C. $13,750 billion. D. $8,813 billion.
Refer to the graph below. The shift of the budget line from AB to CD is consistent with:
A. A decrease in money income
B. A decrease in the prices of both Goods 1 and 2
C. An increase in the prices of both Goods 1 and 2
D. A decrease in the price of Good 1, and an increase in the price of Good 2