For this question, assume that policy makers are pursuing a fixed exchange rate regime and that output is initially greater than the natural level of output. The economy will tend to move toward the natural level of output when which of the following occur?
A) an increase in the price level
B) a devaluation of the currency
C) a reduction in the domestic interest rate
D) an increase in the foreign price level
E) none of the above
A
Economics
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The real business cycle model replicates the key business cycle regularities
A) both qualitatively and quantitatively. B) qualitatively but not quantitatively. C) quantitatively but not qualitatively. D) neither qualitatively nor quantitatively.
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The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is
A. Aid to Families with Dependent Children (AFDC). B. a negative income tax (NIT). C. food stamps. D. Medicaid.
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