Suppose the U.S. dollar depreciates, and monetary authorities respond to stabilize both output and inflation. Which of the following is a correct description of the short-run consequences?
A) output, inflation, and the real interest rate have all increased
B) output, inflation, and the real interest rate have returned to their original values
C) output and inflation are higher, while the real interest rate has fallen
D) output and inflation have returned to their original values, while the real interest rate is increased
D
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Since World War II the U.S. ________
A) has seen a substantial increase in the inflation rate B) has seen less frequent periods of deflation C) has seen a significant upward trend in real GDP D) all of the above E) none of the above
Which of the goals pursued by policymakers in an open economy is desirable because it can reduce the severity of business cycles?
A) exchange-rate stability B) monetary policy independence C) free capital flows D) appreciation of the domestic currency
Which of the following will cause an outward (rightward) shift in the supply curve?
A) a reduction in the price of the good B) an increase in the price of labor input C) an increase in the number of consumers D) technological progress
The slope of a nonlinear function at some particular point
a. is the slope of the straight line that is tangent to the function at that point. b. is the slope of the straight line connecting the origin and the point. c. cannot be determined. d. is constant for the entire function.