The impact of monetary policy through exchange rates tends to ________ the impact of monetary policy through real interest rates.
A. totally negate
B. reinforce
C. contradict
D. be exactly the same as
Answer: B
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The benefits of specialization can be used to explain why:
A. machines are more productive than human workers. B. individuals and nations benefit from trade. C. big companies take advantage of smaller ones. D. workers prefer to work on a variety of tasks during the day.
A supply curve that is horizontal reflects a supply that
A) is elastic. B) is inelastic. C) is unit elastic. D) has a zero elasticity.
Easy monetary policy and tight fiscal policy lead to
A) high real interest rates. B) low real interest rates. C) roughly unchanged real interest rates. D) roughly unchanged real interest rates only when Ricardian equivalence holds; otherwise, low real interest rates.
The concept that describes the situation where the economy has used every available opportunity to make someone better off without making someone else worse off is
A. economic efficiency. B. the benefits principle. C. horizontal equity. D. vertical equity.