The tools of the Federal Reserve:
A. sometimes rely on other actors, such as banks, who can sometimes be unreliable.
B. are easy to use and usually have predictable, standardized effects.
C. sometimes rely on other actors, such as banks, whose actions can be easily predicted.
D. tend to be politically unpopular and thus are rarely used to their full capability.
Ans: A. sometimes rely on other actors, such as banks, who can sometimes be unreliable.
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Economic growth solves the problem of scarcity.
Answer the following statement true (T) or false (F)
The import demand curve shows the amount of the home country's:
a. surplus at various prices below the "no-trade" equilibrium. b. shortage at various prices below the "no-trade" equilibrium. c. equilibrium "no-trade" quantity demanded. d. surplus at various prices above the "no-trade" equilibrium. e. shortage at various prices above the "no-trade" equilibrium.
Reaching a positive-positive outcome through a commitment strategy:
A. will only benefit the players and will not serve public interest. B. can benefit everyone. C. will always benefit everyone. D. will not benefit anyone.
Considering an economy with a current trade surplus and considering only the direct effect of income, an expansionary monetary policy tends to:
A. decrease the exchange rate and decrease the trade surplus. B. increase the exchange rate and decrease the trade surplus. C. decrease the exchange rate and increase the trade surplus. D. increase the exchange rate and increase the trade surplus.