In the early 2000s, Ecuador replaced its currency, the sucre, with the U.S. dollar in order to solve its inflation problem. As long as Ecuador maintains the U.S. dollar as its official currency, what will happen to the monetary policy of Ecuador?
A. It effectively will cease to exist.
B. It will become more powerful but less flexible.
C. It will become less powerful but more flexible.
D. It will become both more powerful and more flexible.
Answer: A
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Stationarity means that the
A) error terms are not correlated. B) probability distribution of the time series variable does not change over time. C) time series has a unit root. D) forecasts remain within 1.96 standard deviation outside the sample period.
Use the above table. The MFC of the 3rd worker is
A) $5. B) $30. C) $20. D) $6.7.
When we examine historical data on income inequality in the U.S., we see that the distribution of income gradually became
a. more equal between 1935 and 2011. b. more equal between 1935 and 1973, but that trend reversed itself between 1973 and 2011. c. more unequal between 1935 and 1973, but that trend reversed itself between 1973 and 2011. d. more unequal between 1935 and 2011.
Figure 17-9
Refer to . The amount of revenue collected by the government from the tariff is
a.
$200.
b.
$400.
c.
$500.
d.
$600.