International financial transactions are most likely to affect the U.S. monetary base when
A) the United States is in recession.
B) the United States is experiencing a severe inflation.
C) the Fed tries to influence the foreign-exchange value of the dollar.
D) interest rates in the United States are highly variable.
C
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Rational ignorance helps explain why
a. legislators often trade votes on key issues to produce positive-sum games between them b. legislators usually disregard the desires of those constituencies that cannot influence their chances for reelection c. voters spend considerable time and effort to gather information to protect themselves against legislators with hidden agendas d. it is rational for legislators to ignore the wishes and desires of all of their constituents e. voters may choose to remain ignorant of issues when there are large costs associated with becoming informed
People who call for creating a "level playing field" believe that:
a. a country with relatively low wages is typically a country with an abundance of low-skilled labor. b. trading on the basis of comparative advantage benefits both domestic and foreign firms. c. creating a "level playing field" undermines the basis for specialization and economic efficiency. d. production in accordance with comparative advantage is unfair. e. free trade allocates the scarce resources in an efficient way.