According to many modern monetarists
A. the government can minimize economic instability by stabilizing growth of the money supply at a constant low rate.
B. short-run variations in an economy's productive capacity can be predicted precisely.
C. discretionary monetary policy enables the Federal Reserve System to closely control the economy.
D. the money supply should grow at a rate determined by short-run economic fluctuations.
A. the government can minimize economic instability by stabilizing growth of the money supply at a constant low rate.
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In the long run, the currency of a country with a higher inflation rate will depreciate against the currency of a country with a lower inflation rate
a. True b. False
Answer the following statements true (T) or false (F)
1. When U.S. citizens travel on United Airlines to Japan, this constitutes a debit in the U.S. balance of payments. 2. The financial account includes income earned on investments made in prior years. 3. When a U.S. citizen buys goods from a foreign merchant, the goods are usually paid for by having the U.S. citizen send a personal check or dollars directly to the exporter. 4. Although prices in the United States and France may be stable, changes in the exchange rate between dollars and euros can make the actual cost of trade more expensive for one or the other. 5. As the price of foreign exchange increases in terms of the U.S. dollar, U.S. products become cheaper for foreigners to buy.
Production possibilities curves can shift outward but they do not shift inward
Indicate whether the statement is true or false
Demand curves are negatively sloped when people buy:
A. less as the price decreases. B. more as the price increases. C. less as incomes decrease. D. more as the price decreases.