Which of the following is true?
a. Monetary policy influences long-term real interest rates more than short-term interest rates.
b. Short-term interest rates are primarily determined by real factors and the expected inflation.
c. A shift to a more expansionary monetary policy will tend to reduce short-term interest rates.
d. A shift to a more expansionary monetary policy will tend to reduce the expected rate of inflation in the future.
C
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Net exports are negative when
A. imports exceed exports. B. depreciation exceeds exports. C. exports exceed imports. D. net exports exceed imports.
Crowding out occurs when
A. increased taxes force higher levels of national saving. B. deficit spending by the government forces private investment spending to contract. C. local businesses cannot get government contracts because of the higher bids of large corporations. D. foreign investors are willing to pay higher prices for U.S. bonds than American citizens will pay.
Refer to the data provided in Table 16.3 below to answer the following question(s).Table 16.3 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.3Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$8 $81$16$16212202 24 40318383 32 72426644 401125361005 48160Refer to Table 16.3. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade
permits, how many permits will be traded between the two firms? A. A will buy one permit from B. B. B will buy one permit from A. C. A will buy two permits from B. D. B will buy two permits from A.
Refer to the table below. Econland's balance of trade in goods and services shows a:
Answer the question on the basis of the following balance of payments data for the hypothetical nation of Econland. All figures are in billions of dollars. (1) Goods exports +$220 (2) Goods imports -328 (3) Exports of services +54 (4) Imports of services -55 (5) Net investment income +18 (6) Net transfers -11 (7) Capital account -1 (8) Foreign purchases of Econland assets +124 (9) Econland purchases of foreign assets -21 A. Net inflow of payments of $109 billion B. Net outflow of payments of $109 billion C. Net inflow of payments of $108 billion D. Net outflow of payments of $108 billion