One way for a country to gain some monetary policy independence and provide some ability to reduce exchange-rate variability is to use
A. a managed floating exchange rate.
B. a monetary union.
C. a gold standard.
D. a currency board.
Answer: A
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A firm will shut down in the short run if
A) total fixed costs are too high. B) total revenue from operating would not cover all costs. C) total revenue from operating would not cover variable costs. D) total revenue from operating would not cover fixed costs.
When consumers lose confidence in the future of their economy, they begin to consume more, and this causes the aggregate demand curve to shift to the right
a. True b. False Indicate whether the statement is true or false
Which of the following factors weakens the case for private-sector provision of goods and services relative to public-sector provision?
a. externalities b. the rational-ignorance effect c. the shortsightedness effect d. well-informed consumers
The policy rule recommended by monetarists is that the money supply should be increased at the same rate as the potential growth in:
A. Real GDP B. Population C. The level of prices D. The velocity of money