The Federal Reserve can influence the exchange rate by
A) changing interest rates.
B) buying or selling dollars.
C) Both answers A and B are correct.
D) None of the above answers is correct.
C
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Given the uncertainty about the effects of macro policy, economists generally propose that
A) macro policies should be more active, the lower the level of unemployment or inflation. B) changes in money growth should only be used for fine tuning the economy, not for correcting large imbalances (such as high inflation). C) money growth should be set at zero by constitutional amendment. D) elected officials should have more input in the determination of monetary policy. E) none of the above
A firm will hire a unit of input up to the point where
A. the marginal physical product of the input is equal to the price of output. B. the marginal revenue product of the input is equal to the marginal factor cost of the input. C. the marginal cost of the input equals the marginal cost of output. D. the price of the input is equal to the price of output.