Compare currency board to conventional fixed exchange rate
What will be an ideal response?
Currency board may not acquire domestic assets and thus cannot lend currency freely to domestic banks in time of financial crisis. Also, limit government ability to "surprise" the market and have real devaluation.
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List four types of tax-deferred saving vehicles. How could tax-deferred saving vehicles, if modified, transform the U.S. income tax into a consumption tax?
What will be an ideal response?
If output is below the full-employment level of output, we should expect wages to increase over time
a. True b. False
Table 30.2Number of stylists (per week)Total output (per week)Marginal physical product (output per stylist)Total revenue (dollars per week)Marginal revenue product (dollars per stylist)00---________---160________________________280________________________390________________________490________________________Table 30.2 shows how many hairstyling appointments a hair salon can schedule per week based on the number of stylists. In the spaces provided, compute the marginal physical product (MPP) of the hair stylists, total revenue, and marginal revenue product of the stylists, assuming that a hair stylist charges $60 per appointment. What is the marginal revenue product of the second hairstylist?
A. $80 per week. B. $1,200 per week. C. $4,800 per week. D. $20 per week.
The position of the long-run aggregate supply curve is determined by the ______.
a. maximum price level in the economy
b. short-run aggregate supply curve
c. natural rate of real output
d. long-run aggregate demand curve