The tools of monetary policy are
A) government spending, tax rates, and the required reserve ratio.
B) open market operations, differential between the discount rate and the federal funds rate, and the required reserve ratio.
C) open market operations, differential between the discount rate and the federal funds rate, and tax rates.
D) open market operations, government spending, and the required reserve ratio.
B
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Compare the macroeconomic performances in the 1990s of the following countries under the following exchange-rate regimes: floating exchange rates, Mexico and Brazil; capital control, China and Malaysia; and currency boards, Estonia and Hong Kong;
dollarization, Argentina.
The difference between merchandise exports and imports is called the ________ balance
A) current account B) capital account C) official reserve transactions D) trade
The long-run Phillips curve suggests that changing the rate of unemployment in the economy has no impact on the inflation rate
a. True b. False Indicate whether the statement is true or false
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model? a. The quantity of real loanable funds per time period rises and
GDP Price Index rises. b. The quantity of real loanable funds per time period falls and GDP Price Index falls. c. The quantity of real loanable funds per time period rises and GDP Price Index falls. d. The quantity of real loanable funds per time period and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.