Under which of the following scenarios is active domestic monetary policy least likely to be effective?
A. Fixed exchange rates; perfect capital mobility
B. Flexible exchange rates; perfect capital mobility
C. Flexible exchange rates; low capital mobility
D. All three scenarios are equal.
Answer: A
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A tradeoff is
A) represented by a point inside a PPF. B) represented by a point outside a PPF. C) a constraint that requires giving up one thing to get another. D) a transaction at a price either above or below the equilibrium price.
If the punishment associated with breaking a ban is not severe enough, it may:
A. not alter the trade-offs enough to change the consumption patterns of the banned good. B. cause even more consumption of the good, exaggerating the problem. C. still decrease the consumption of the good if the price of the good changes. D. still be effective if it gains media attention.
An empowered employee has
A. explicit rights to implement but not initiate any decision. B. explicit rights to initiate and implement any decision, subject to the manager's ratification and monitoring. C. explicit rights to initiate and implement any decision, without the manager's ratification and monitoring. D. explicit rights to initiate but not implement any decision.
Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this
a. it is only necessary that long-run aggregate supply shifts right over time. b. it is only necessary that aggregate demand shifts right over time. c. both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must be shifting farther. d. None of the above cases would produce rising prices and growing real GDP over time.