Suppose you reserve a hotel room in Madrid for $300 per night
When you check out, you are charged only $285 per night. Assuming that the price of the room in euros had not changed, and that the nominal exchange rate had been 0.8 (euros/$) when the reservation was made, the new nominal exchange rate is ________.
A) 0.84
B) 0.76
C) 0.95
D) 1.05
A
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Attempts to influence the law for your own private economic advantage is called
A) tax imposition. B) subsidizing. C) rent seeking. D) creating a deadweight loss.
What is the name of the entity, composed of Federal Reserve district bankers, that consults on monetary policy?
A) The Federal Open Market Committee B) The Federal Advisory Council C) The Monetary Policy Council D) The District Bank Committee
In the event that nominal short-term interest rates cannot be lowered further, the Federal Reserve might rely on ________
A) federal government fiscal policy B) targeting the fed funds rate C) quantitative easing D) targeting the inflation rate
Giving up consumption today for consumption tomorrow accelerates economic growth by
A. rapid expansion of the money supply. B. increasing the expected rate of inflation. C. having the economy produce no consumer goods. D. increasing saving out of disposable income.