Under purely flexible exchange rates,
A) there is no intervention by the domestic fiscal or monetary authorities to specifically target the nominal exchange rate.
B) there is only occasional intervention by the domestic fiscal or monetary authorities to specifically target the nominal exchange rate.
C) the domestic fiscal and monetary authorities retain considerable flexibility to prevent short-run variability in the nominal exchange rate.
D) the domestic fiscal and monetary authorities retain considerable flexibility to prevent long-run variability in the nominal exchange rate.
A
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Inflation reduces the multiplier effect by reducing consumers’ wealth and purchasing power.
Answer the following statement true (T) or false (F)
Governmental rules that significantly promoted entrepreneurship first became prominent during the
a. Great Recession. b. Age of Enlightenment. c. Great Depression. d. Industrial Revolution.
A labor union is an organization representing workers in negotiations with employers over wages, benefits, and working conditions.
Answer the following statement true (T) or false (F)
Structural unemployment:
A. Is generally less than cyclical unemployment B. Cannot be reduced with demand side policies C. Includes cyclical unemployment D. Is generally greater than cyclical unemployment