Monetary policy is more effective when:
a. The demand for real loanable funds has a high elasticity.
b. The demand for real loanable funds has a low elasticity.
c. The strength of the monetary policy does not depend on the elasticity of demand for real loanable funds. Rather, it depends on the elasticity of demand in the foreign exchange market.
d. Monetary policy has no influence in the Three-Sector-Model.
.A
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Which of the following is a diversity of industry argument in favor of restrictions on foreign trade? a. Foreign producers must be prevented from exporting their goods below cost of production
b. Domestic workers must be protected from the lower wages paid in foreign countries. c. The nation's security demands we ensure an adequate domestic supply of certain strategic goods. d. Don't have all of your eggs in one basket. e. Industries in the early stages of development must be protected from more mature producers.
Which statement is false?
A. Our balance of payments is the entire flow of U.S. dollars and foreign currencies into and out of the country. B. Our trade balance is just the difference between our imports and our exports. C. Our trade balance has been negative since the mid-1970s. D. None of these statements are false
Refer to the data provided in Table 9.3 below to answer the following question(s). Table 9.3qTFCTVCTCMCAVCATC0$100 $0$100 ---- -- 1100401404040 140 21006016020 30 80 31009019030 30 63.334100124 224 343156 5100180 280 56 36 56 6100 264 364 84 44 60.677100 372 472 108 53.14 67.43Refer to Table 9.3. If the market price is $84, then this firm will maximize profits by producing ________ unit(s) of output and its profits will be ________.
A. six; $240 B. six; $140 C. seven; $116 D. five; $140
If the Fed fears inflation, then the Fed
A) directs banks to raise the nominal interest rate. B) will increase the income tax rate on interest income. C) directs banks to lower the nominal interest rate. D) will sell government securities in the open market. E) will buy government securities in the open market.