When U.S. residents sell assets abroad, they are in essence
A. borrowing money, and foreign debts to the United States increase.
B. borrowing money, and foreign debts to the United States decrease.
C. lending money, and foreign debts to the United States decrease.
D. lending money, and foreign debts to the United States increase.
Answer: B
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The figure above represents the relationship between output and cost in an industry with an external cost. Which line represents the marginal private cost (MC) curve?
A) Curve 1 B) Curve 2 C) the dotted line BC D) the y-axis E) the dotted line AB
Which of the following is part of the secondary market?
A) the over-the-counter market B) NASDAQ C) New York Stock Exchange D) all of these
In recent years, a monetary growth rule has fallen out of favor because
A) the close relationship between movements in M1 and movements in real GDP has become weaker. B) it is believed that active monetary policy destabilizes the economy and makes the business cycle worse. C) the growth rate of GDP has been highly unstable. D) the growth rate of M1 has become more stable.
Monetarists reject using discretionary monetary policy as an effective stabilization tool because
a. it would require the money supply to grow at a rate equal to the economy's long-run rate of economic growth. b. they do not believe that changes in the money stock affect output or prices. c. they believe that there are lengthy and variable time lags between when a change in monetary policy is instituted and when the change exerts its primary impact on output and prices. d. they believe monetary policy can stimulate aggregate demand, but it cannot control inflation.