Compared to the past, FOMC meetings are now much more transparent. How might this transparency impact the effectiveness of monetary policy actions?
A) The transparency helps make the Fed's actions more credible and should help make policy actions more effective.
B) The transparency undermines the effectiveness since financial markets can more quickly adjust their behavior to fight the policy actions.
C) The transparency counteracts the secrecy in which fiscal policy is enacted, and therefore decreases its effectiveness.
D) The transparency lengthens policy lags, so monetary policy takes longer to implement and take effect.
A
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Most economists agree that ________ are the single most important source of economic growth.
A. increases in physical capital B. technological advances C. increases in human capital D. discoveries of natural resources
In July 2008, the Federal Communications Commission approved the merger of satellite radio providers XM Satellite and Sirius Satellite Radio, establishing a single satellite radio company in America
Under the terms of the deal, the companies agreed not to raise prices for the next three years. Why would the FTC require prices not to increase for three years? A) Compared to competition, monopolies are always worse for consumers. B) Compared to competition, monopolies restrict output and charge higher prices. C) Compared to competition, monopolies increase prices and output. D) Compared to competition, monopolies restrict output and charge lower prices.
An excess supply of money is eliminated by a decrease in the value of money
a. True b. False Indicate whether the statement is true or false
Assume South Korea and Vietnam have the same amount of resources. In a given time period, South Korea can produce 100,000 jackets or 1,000,000 shirts. Vietnam can produce 200,000 jackets or 2,000,000 shirts. This means that
A. South Korea has an absolute advantage in jackets. B. South Korea has a comparative advantage in jackets. C. Vietnam has an absolute advantage in both jackets and shirts. D. Vietnam has a comparative advantage in shirts.