What are the three types of transactions between the residents of different countries?
What will be an ideal response?
The three types are:
(1 ) Trades of goods and services for goods or services
(2 ) Trades of goods and services for assets, and
(3 ) Trades of assets for assets.
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One of the main roles of a central bank is:
A. managing the nation's money demand. B. coordinating the banking system to ensure a sound economy. C. accepting deposits from households and other private individuals. D. funding federal government spending.
Which of the following is an important advantage of discretionary monetary policy?
a. Influencing the political business cycle b. Flexibility to deal with changing economic conditions c. Limiting the opportunities for abuse of power by policymakers d. Avoiding the time inconsistency of policy problem
The ______________________: is the expenditure required to construct the building today, replicating it in exact detail.
Fill in the blank(s) with the appropriate word(s).
If actual output equals potential output, unusually slow potential output growth would tend to result in:
A. an output gap. B. a recessionary gap. C. a recession. D. an expansion.