The World Trade Organization
A) was set up to increase tariffs among nations.
B) was set up to negotiate exchange rates between countries.
C) was set up to decrease tariffs among nations.
D) handles trade disputes among its member nations.
D
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Using the Taylor rule, if the current inflation rate equals the target inflation rate and real GDP equals potential GDP, then the federal funds target rate equals the
A) current inflation rate plus the real equilibrium federal funds rate. B) real equilibrium federal funds rate. C) current inflation rate. D) current discount rate.
Suppose that the Bank of Japan buys U.S. dollar assets with yen-denominated assets. Everything else held constant, this transaction will cause ________ in the foreign assets held by the Federal Reserve and ________ in the U.S. monetary base
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease