Advocates of flexible exchange rates claim that under flexible exchange rates, if the central bank faced unemployment
A) and thus wished to decrease its money supply, there would no longer be any legal barrier to the currency depreciation this would cause.
B) and thus wished to expand its money supply, there would no longer be any legal barrier to the currency depreciation this would cause.
C) and wished to expand its money supply, there would no longer be any legal barrier to the currency appreciation this would cause.
D) and wished to decrease its money supply, there now would be a legal barrier to the currency depreciation this would cause.
E) and wished to increase output, there would no longer be a legal barrier to the currency appreciation this would cause.
B
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From an initial long-run equilibrium, if aggregate demand grows faster than long-run and short-run aggregate supply, then Congress and the president would most likely
A) decrease tax rates. B) decrease government spending. C) decrease the required reserve ratio. D) decrease oil prices.
Until the 1840s, the leading transport route in the US (in terms of volume of freight from the West) was:
a. the Northern Gateway. b. the Northeastern Gateway. c. the Southern Gateway. d. the Erie Canal.
According to the Keynesian consumption function, if disposable income
a. increases, planned saving will increase. b. increases, planned consumption will increase. c. falls, planned saving will increase. d. increases, both planned saving and planned consumption will increase.
An example of a cooperative game would be
A) oligopoly. B) monopolistic competition. C) a cartel. D) perfect competition.