When policymakers make decisions in response to a pre-specified rule, they are undertaking
A. discretionary policy.
B. passive policy.
C. irrational policy.
D. active policy.
Answer: B
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When the value of a currency is determined ________, the exchange rate system is defined as managed float
A) only by supply and demand B) by its issuing government, with occasional readjustments in value C) mostly by supply and demand, but with occasional government intervention D) by its issuing government
Which of the following is an argument in favor of interventionist trade policies?
(a) Cheaper capital goods. (b) Declining terms of trade. (c) Decreased losses from rent-seeking activities. (d) All of the above. (e) None of the above.
Complete Milton Friedman's famous statement, "Inflation is always and everywhere a ________ phenomenon."
A) recessionary B) discretionary C) repressionary D) monetary
Limits of special-interest contributions to national political campaigns
a. would reduce the extent of rent seeking b. would involve concentrated costs and concentrated benefits c. are a form of rational ignorance d. would heighten the advantage of incumbency e. would heighten the advantage of challengers