From the four asset bubbles discussed in this chapter, the one that has the smallest impact on the economy is

The Federal Reserve cannot target both the money supply and the interest rate because it does not control

A) bank reserves. B) open market operations. C) money demand. D) the discount rate.

The import of Apple iPads assembled in Shanghai at a $295 wholesale price ($213 cost and $82 profit margin) adds more than it should to the U.S. trade deficit with China because

a. Chinese assembly labor represents only 47 % of the wholesale cost b. the iPad's popularity has triggered an enormous number of unit sales c. wholesale prices only count in the trade statistics if final product prices are higher d. as with foreign-assembled minivans, most of the subassembly components come from the U.S. e. the Chinese yuan is a managed currency