The value of the marginal propensity to import for an open economy will realistically fall between zero and one.
Answer the following statement true (T) or false (F)
True
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The switch to flexible exchange rates in 1973 has made the effect of monetary policy on net exports a ________ important component of the monetary policy multiplier process, and thus has ________ the effectiveness lag
A) more, lengthened B) more, shortened C) less, lengthened D) less, shortened
The spot market is:
a. Another term for an over-the-counter-exchange. b. The market for current delivery. c. The market for delivery in the future. d. The market for current deliveries but future payments.
People had been expecting the price level to be 120 but it turns out to be 122 . In response Robinson Tire Company increases the number of workers it employs. What could explain this?
a. both sticky price theory and sticky wage theory b. sticky price theory but not sticky wage theory c. sticky wage theory but not sticky price theory d. neither sticky wage theory nor sticky price theory
Which of the following best defines final-offer arbitration?
A. An arbitrator produces a contract that the union and firm are both encouraged to accept. B. An arbitrator chooses the firm's last offer or the union's last offer, and both sides must abide by whichever contract is chosen. C. After a short strike, the union offers a final contract to the firm that the firm must accept. D. Final-offer arbitration occurs when the firm threatens to shut down unless the union accepts the firm's final offer. E. An arbitrator facilitates a discussion between the union and firm after the cool-down period has expired.