In Latin America, countries like Brazil and Mexico have found it necessary to grant their central banks more independence in order to
a. maintain higher levels of political stability.
b. promote economic growth and employment.
c. counteract high rates of inflation.
d. deal with the consequences of globalization.
c
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A(n) ________ in U.S. prices will cause a decrease in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
What are the three monetary policy tools of the Fed? Briefly describe how each tool can be used to implement an expansionary monetary policy and a contractionary monetary policy
What will be an ideal response?
What is the opportunity cost of 1 ton of oranges for the nations of Argentina and Brazil, respectively?
A. .25 ton of apples and .5 ton of apples
B. 10 tons of apples and 4 tons of apples
C. .5 ton of apples and .25 ton of apples
D. 4 tons of apples and 2 tons of apples
Refer to the accompanying figure.
An economy is currently in long-run equilibrium at point B, at an inflation rate of ?', which is too high for to sustain economic growth. If an anti-inflationary policy is enacted, the economy will be in short-run equilibrium at point ________ creating ________ gap.
A. A; an expansionary B. D; an expansionary C. D; a recessionary D. A; a recessionary