Which of the following is an instrument of monetary policy?
A) The interest rate on three-month Treasury bills
B) The mortgage interest rate
C) The discount rate
D) The budget deficit
C
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In the pre-World War I period, the United Kingdom exported mainly
A) manufactured goods. B) services. C) primary products including agricultural. D) technology intensive products. E) livestock.
If one economic agent possesses more information than their fellow transactor ________
A) economic transactions cannot occur B) the moral hazard problem has been eliminated C) the adverse section problem has been eliminated D) asymmetric information exists
As one moves down a straight-line, down-sloping demand curve, price elasticity will:
a. change from elastic, to unit elastic, then to inelastic. b. remain the same between any two points. c. change from inelastic, to elastic, then to unit elastic. d. change from unit elastic, to elastic, then to inelastic. e. change from elastic, to inelastic, then to unit elastic.
Suppose Country X is relatively labor-abundant and relatively land-scarce. Country Y is relatively labor-scarce and relatively land-abundant. The production of corn is relatively land-intensive while the production of shoes is relatively labor-intensive. Explain the short- and long-run effects of opening to free trade between these countries on the incomes of: workers employed in the production of corn in each country; workers employed in the production of shoes in each country; land used in the production of corn in each country; and land used in the production of shoes in each country.
What will be an ideal response?