In the United States economy, what is the basic measure of money?

When an increase in the quantity of money is considered to be permanent and prices are sticky, then in the short run the exchange rate depreciates and overshoots because:

a. domestic nominal returns fall relative to foreign returns, and traders expect a permanent depreciation in future exchange rates. b. traders do not change their expectations of the exchange rate, and lower domestic rates make it easier to borrow. c. inflationary expectations eventually cause a rise in domestic real returns. d. traders quickly realize that their expectations of future exchange rates are incorrect and eventually prices will become unstuck.

The members of a society can assign tasks according to ability and distribute benefits in accordance with need only

A) if the government controls the economy. B) if they have a workable procedure for assessing abilities and needs. C) in a socialist or, more likely, a communist society. D) when there are enough of them to assure competent performance of all necessary tasks. E) when they are committed to equity as well as efficiency.