What is the difference between a sterilized and non-sterilized central bank intervention in the foreign exchange market?
What will be an ideal response?
A sterilized central bank intervention in the foreign exchange market does not affect the domestic money supply whereas a non-sterilized intervention would affect the domestic money supply.
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The shortest time lag for monetary policy is the implementation lag.
a. true b. false
Which of the following is NOT a TRUE statement about perfectly competitive and monopolistically competitive firms?
A) Both monopolistically competitive and perfectly competitive firms have perfectly elastic demands. B) In the long run, only monopolistically competitive firms have excess capacity. C) Perfectly competitive firms produce at their efficient scale. D) There are a large number of firms in both monopolistically competitive and perfectly competitive markets.