A device used to measure the movement of stock prices is called a(n)
A) exchange
B) index.
C) network.
D) bureaucracy.
B
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One of the strongest arguments against active stabilization policy is
A. that recognition lags make timely intervention very difficult. B. the economy corrects itself very slowly. C. the inability of economic theory to suggest appropriate policy. D. the difficulty of obtaining agreement on monetary policy.
The city of Burlington is a very popular town for tourists to visit in the summer. We would expect the:
A. demand for normal goods to increase each summer. B. demand for normal goods to decrease each summer. C. prices of all normal goods to decrease each summer. D. demand curve for normal goods to shift to the left.
Any central bank policy that influences the domestic interest rate will:
A. not impact the supply of and demand for the domestic currency if exchange rates are flexible. B. be compatible with fixed exchange rates. C. have an effect on the exchange rate. D. have no effect on the exchange rate if exchange rates are flexible.
The asset approach basically looks at as the fundamental variable affecting exchange rates.
a. interest rates; short-run b. interest rates; long-run c. the price level; short-run d. the price level; long-run