Some people who believe monetary policymakers should not address equity and property price bubbles argue their position based on:
A. price bubbles are virtually impossible to identify when they are developing.
B. their belief that government should stay out of private matters.
C. the policymakers lack experience with financial markets.
D. all of the answers given are correct.
Answer: A
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A command-and-control approach to environmental policy
a. requires that the least amount of resources be used to achieve an objective b. uses incentives to encourage pollution reduction c. uses limits or restrictions to directly regulate polluters d. is rarely used by governments in the United States and other nations
In a perfectly competitive market, there are
A) many buyers and many sellers. B) many buyers, but there might be only one or two sellers. C) many sellers, but there might be only one or two buyers. D) one firm that sets the price for the others to follow.
In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it can still benefit by trading with the other country
Indicate whether the statement is true or false
The agency that was created to protect depositors after the banking failures of 1930-1933 is the
A) Federal Reserve System. B) Federal Deposit Insurance Corporation. C) Treasury Department. D) Office of the Comptroller of the Currency.