One of the advantages of floating exchange rates is that:
a. consumers always know how much imported goods cost.
b. businesses always know, in advance, what future exchange rates will be.
c. countries are free to pursue their own macroeconomic policies without maintaining exchange rates.
d. countries cannot act independently and must thus coordinate their macroeconomic policies.
e. the global interest rate tends to decline to the lowest possible level.
c
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The marginal cost of medical care to the patient is zero under:
A. government-sponsored health care coverage. B. an HMO. C. first-dollar health insurance coverage. D. no circumstances.
In the early 1950s, economist William Baumol demonstrated that a lower interest rate ________ the demand for money in a model without bond speculation ________ a "broker's fee" for conversions between money and bonds
A) raises, and without B) raises, but with C) lowers, and without D) lowers, but with E) does not affect, and without
A production possibilities curve always slopes downward to the right because resources
a. are not scarce. b. have no opportunity cost. c. are freely available. d. are limited. e. are not related to outputs.
If the federal budget deficit is falling, the national debt will
A. be rising at an increasing rate. B. be rising at a decreasing rate. C. remain at the same level. D. be falling at an increasing rate.