Which of the following is a lesson that can be learned from monetary policy during the Great Depression?
a. Monetary policy should be changed frequently in response to economic fluctuations.
b. Prolonged periods of monetary contraction will retard economic growth.
c. Low interest rates will direct an economy toward recovery.
d. Monetary policy should focus on variables such as output and employment.
B
You might also like to view...
When a country experiences capital flight its
a. net capital outflow increases and its real exchange rate rises. b. net capital outflow increases and its real exchange rate falls. c. net capital outflow decreases and its real exchange rate rises. d. net capital outflow decreases and its real exchange rate falls.
Which of the following is an example of double counting in regards to GDP?
a. counting the value of two products often bought together, such as chips and dip b. counting the value of sweaters that are inferior quality c. counting the value of plastic used to make model kits as well as the final kit itself d. counting the value of products that have two or more components such a TV with a remote control
As a unit of accounting, money is used
A. to pay off future debts. B. to define prices of all other goods. C. to hold purchasing power over time. D. to exchange for goods and services.
Compared to regular grocery stores, convenience stores have
a. higher prices and a more limited selection of goods b. higher prices and a greater selection of goods c. lower prices and a more limited selection of goods d. lower prices and a greater selection of goods e. equal prices and an equal selection of goods