A monetary shock of a given size has a larger real effect:
a. the more it is anticipated by the public
b. the more fully it is explained and communicated to the public
c. the more stable the underlying monetary environment.
d. all of the above.
Answer: c. the more stable the underlying monetary environment.
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Under the current managed float exchange rate regime, countries with ________ in their balance of payments frequently do not want to see their currencies ________ because it makes their goods more expensive abroad and foreign goods cheaper in their
countries. A) surpluses; depreciate B) deficits; depreciate C) surpluses; appreciate D) deficits; appreciate
The United Auto Workers is an example of
A) a public-sector union. B) a craft union. C) an industrial union. D) a socialist union.
The components of the formula for the Taylor rule includes each of the following, except:
A. the current inflation rate. B. the inflation gap. C. the 30-year U.S. Treasury bond rate. D. the target federal funds rate.
Which of the following increases in labor demand is due to a change in the price of a related resource?
A. Software sales rise, thus increasing the demand for software developers B. Snowboarding increases in popularity, thus increasing the demand for the workers who make snowboards C. A decrease in the price of wood decreases the cost of furniture, thus increasing the demand for furniture workers D. A technological change increases output per worker in the computer industry, thus increasing the demand for computer workers