Spending so much on arms that the economy of an adversary collapses is called market warfare
a. True b. False
b
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According to the rational expectations hypothesis, an individual's assessment of future economic performance
A) considers both past performance and current monetary and fiscal policy. B) only considers past performance. C) does not consider the impact of inflation. D) does not consider past performance.
If a country is experiencing chronic deficits on current account, what must ultimately happen to its exchange rate?
a. it must appreciate b. it must depreciate c. the market will shift it from floating to fixed d. the market will shift it from fixed to floating e. it will become equalized, that is, the same rate as in other countries
What happens to the monetary base if the domestic currency is undervalued (the central bank fixed the exchange rate below equilibrium) and the central bank intervenes to fix the exchange rate at its current level?
a. The change in the monetary base is ambiguous. b. The monetary base is only affected by interventions of the central bank when the domestic currency is overvalued. c. The monetary base will rise. d. The monetary base is never affected by interventions of the central bank. e. The monetary base will fall.
Which of the following is an example of a renewable natural resource?
a. the knowledge possessed by scientists b. carpenters' labor services c. lumber d. All of the above are correct.