If prices are inflexible, monetary policy:
A. affects real income but not nominal income.
B. affects both nominal and real income.
C. does not affect real or nominal income.
D. affects nominal income but not real income.
Answer: B
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The main disadvantage of using money as a store of value is that
A. unlike other assets, money serves as a medium of exchange. B. barter is a more efficient way to conduct transactions than using money. C. other assets pay relatively higher rates of interest than money. D. other assets provide greater anonymity than cash.
Which of the following is true about the chairman of the Federal Reserve Board of Governors?
A. The chairman is elected by the Fed regional bank presidents. B. The chairman serves a 21-year term. C. A new chairman is elected as soon as a new U.S. president takes office. D. The chairman can be reappointed for more than one term.
When the real exchange rate for the dollar depreciates, U.S. goods become
a. less expensive relative to foreign goods, which makes exports rise and imports fall. b. less expensive relative to foreign goods, which makes exports fall and imports rise. c. more expensive relative to foreign goods, which makes exports rise and imports fall. d. more expensive relative to foreign goods, which makes exports fall and imports rise.
The trade theories associated with Smith and Ricardo advocate for _____ free trade
Fill in the blank(s) with the appropriate word(s).