Assume that a country's government influences the exchange rate through active central bank intervention, with no pre-announced path. This policy is known as a(n):
a. floating exchange-rate policy.
b. managed floating exchange-rate policy.
c. fixed exchange-rate policy.
d. crawling-peg exchange-rate policy.
e. interventionist exchange-rate policy.
b
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Suppose that there is a temporary, but significant, increase in oil prices in an economy with an upward-sloping SRAS curve.
a. If policymakers wish to prevent the equilibrium price level from changing in response to the oil price increase, should they increase or decrease the quantity of money in circulation? Why? b. If policy makers wish to prevent equilibrium real GDP from changing in response to the oil price increase should they increase or decrease the quantity of money in circulation? Why? c. Can policymakers stabilize both the price level and real GDP simultaneously in response to a short-lived but sudden rise in oil prices? Explain briefly.
Which of the following is an example of an efficiency-equity trade-off faced by economic agents?
A) Concerned about the falling birth rate, the French government has pledged more money for families with three children, in an effort to encourage working women to have more babies. B) All New York City art museums are considering adopting a free-admission policy for local residents one weekend per month. C) According to an article by in the American Journal of Public Health by Edward Kaplan and Michael Merson of Yale University School of Medicine, the federal government's current method of allocating HIV-prevention resources is not cost-effective. Instead of allocating resources to states in proportion to reported AIDS cases, resources should flow first to those activities that prevent more infections per dollar and then to less and less effective combinations of programs and populations until funds are exhausted, even if it means that some populations would be left without any prevention services. D) Some U.S. colleges are actively recruiting foreign students for their technology-based programs.
Movement along the aggregate expenditure line is caused by a change in the level of income
a. True b. False Indicate whether the statement is true or false
In the early 1900s, Henry Ford introduced a
a. high-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. b. high-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory. c. low-wage policy, and this policy produced many of the effects predicted by efficiency-wage theory. d. low-wage policy, and this policy produced none of the effects predicted by efficiency-wage theory.