The classically-based models (classical, new classical, monetarist, real business cycle) all agree that
a. markets always clear.
b. monetary policy can affect output in the short-run but not the long-run.
c. changes in aggregate drive most changes in output.
d. stabilization policy is ineffective.
e. None of the above
D
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Why may a central bank intervene in the foreign exchange market when its currency is depreciating?
A) concerns about the country's exports becoming less competitive B) concerns about inflation C) concerns about deflation D) to sterilize the effects on the domestic economy
If the income of U.S. citizens falls relative to the income of Japanese citizens, the dollar will __________ in terms of the yen, and the yen will __________ in terms of the dollar
A) appreciate; depreciate B) appreciate; remain unaffected C) depreciate; appreciate D) depreciate; remain unaffected E) remain unaffected; appreciate
To calculate the marginal utility of consuming the Nth product:
A. divide total satisfaction from consuming all N products by N. B. subtract total satisfaction from consuming N - 1 products from total satisfaction from consuming N products. C. divide total satisfaction from consuming all N products by the price of the product. D. subtract additional satisfaction from consuming the (N - 1)th production from the additional satisfaction from consuming the Nth product.
Explain the three rules that countries must follow to maintain a gold standard
What will be an ideal response?