A market failure arises when an entire sector of the economy (for example, the airline industry) collapses because of some unforeseen event

Refer to Figure 7.1. Dudley values silence at

A) $100. B) $200. C) $350. D) $550.

Monetary policy is most effective in influencing aggregate demand

A. under a fixed exchange-rate system without sterilization. B. when there is low capital mobility. C. under a freely floating exchange-rate system. D. under a fixed exchange-rate system with sterilization.