To counter a speculative attack on an overvalued currency, the monetary policymakers must ________ monetary policy and to fight a recession the monetary policymakers must ________ monetary policy.
A. tighten; ease
B. ease; tighten
C. tighten; tighten
D. ease; ease
Answer: A
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The equilibrium wage and quantity of labor in the market for skilled workers is determined by
A) the demand and supply of labor. B) the strength of labor unions. C) the market value created by the output of these skilled workers. D) the monopsony power of firms.
If inflation is positive and is perfectly anticipated
A) those that lend money lose. B) no one in the economy loses. C) those that borrow money lose. D) those that hold paper money lose.
Social inequalities disappear when income inequalities are eliminated
Indicate whether the statement is true or false
Why do financial intermediaries aid in the efficient operation of the economy?
a. Without them it would be difficult for small savers to lend to large borrowers. b. They lend funds to businesses at a zero interest rate. c. They print currency. d. They regulate the money supply. e. They engage in open market operations.