Throughout 2008, inflation and the real interest rate declined together. The cause is a combination of ________
A) monetary policy easing and declining autonomous spending
B) declining autonomous spending and movement along a fixed MP curve
C) monetary policy tightening and inversion of the MP curve
D) increased government spending and movement along a fixed MP curve
E) none of the above
A
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Under the IMF fixed exchange rate system, a nation running a balance of payments deficit would have an excess __________ its currency in the foreign exchange market and that nation's central bank would have to __________ some of its currency to
maintain the fixed exchange rate. A) supply of; buy B) supply of; sell C) demand for; buy D) demand for; sell
If good salespeople are extremely risk averse, then a choice between a fixed-fee contract and a contingent contract
A) avoids a moral hazard. B) will result in all job candidates choosing the contingent contract. C) will result in an efficient contract. D) may not be a good screening device.
Which of the following is TRUE about species in the world?
A) Most extinct species became extinct within the past 30 years. B) The majority of extinct species became extinct before humans appeared. C) Extinct species became extinct only after human appeared. D) No species has ever become extinct.
If discouraged workers were counted as unemployed, then as output decreased the unemployment rate would
A. fall by less than is the case if discouraged workers are not counted as unemployed. B. increase by less than is the case if discouraged workers are not counted as unemployed. C. increase by more than is the case if discouraged workers are not counted as unemployed. D. fall by more than is the case if discouraged workers are not counted as unemployed.