Even though it may seem that nations have a wide variety of policy options to stabilize their economies, there are a number of issues to be considered and overcome. Which of the following is NOT an issue confronting policy makers?

A) the desire to maintain fixed exchange rates or membership in a pegged currency bloc
B) long and uncertain time lags when policy effects will occur
C) the pass-through issue, when little effect occurs on the real effective exchange rate
D) international controls that limit the ability of any nation to determine its exchange rate policy


Ans: D) international controls that limit the ability of any nation to determine its exchange rate policy

Economics

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Even though mass transit systems such as buses are available in most cities in the United States, many residents decide to drive to work in their own vehicles because

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In regards to monopolistic competition, some economists argue that consumers are willing to pay a higher price in order to enjoy a wider selection of goods and services

a. True b. False

Economics

Suppose there are 3 possible outcomes to a vote: A, B, and C. If voters prefer A to B, B to C, and C to A, which of the following concepts are violated?

a. Transitivity b. Arrow's impossibility theorem c. Median voter theorem d. None of the above concepts are violated.

Economics