Other than following a rule, a country could do each of the following things to help its central bank achieve credibility except
A. increase central bank independence.
B. put the central bank under the government's control.
C. appoint a tough central banker.
D. change the incentives of the central bankers.
Answer: B
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Use the following circular flow diagram to answer the question below.
If box A represents businesses or firms, B the resource market, and C households, and if flow (3) represents money payments to households, then flow (1) would represent
A. consumption expenditures. B. the flow of goods. C. resources. D. payments to resources.
Which of the following statements is true?
A) Rational economic agents maximize more than just monetary income. B) It is not necessary to consider the risks of a particular alternative while making an optimal decision. C) An individual does not require information to make optimal decisions. D) The principle of optimization is only accurate when it comes to making monetary decisions.
People out of work for 27 weeks or longer are said to be short-term unemployed
Indicate whether the statement is true or false
nder the Bretton Woods system, ______.
a. governments maintained stable exchange rates by buying or selling currencies or reserves b. exchange rates were very flexible and experienced little government intervention c. governments allowed exchange rates to fluctuate freely d. market forces totally determined exchange rates