Fluctuations in the demand for reserves cause the Fed to lose control over a monetary aggregate if the Fed targets
A) a monetary aggregate.
B) the monetary base.
C) an interest rate.
D) nominal GDP.
C
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Why is China's currency undervalued?
A) The Asian miracle is over. B) They do not trade with the U.S. C) They do not allow their currency to appreciate despite large external surpluses. D) They are stockpiling international reserves to protect against the next East Asian crisis. E) They are not aware of the real value of their currency.
Figure 9-2
When an economy is experiencing the aggregate demand and supply conditions depicted in ,
a.
the actual rate of unemployment will exceed the natural rate of unemployment.
b.
buyers and sellers will have correctly anticipated the level of prices P1.
c.
the output y1 will not be sustainable in the future.
d.
all of the above are correct.