A common response to stop a depreciation of a currency is to use contractionary monetary policy, which could lead to a recession

If wages and prices are flexible, then an anticipated change in the money supply will cause wages and prices to __________ the actual inflation rate

A) increase at the same rate as B) increase at a higher rate than C) increase at a slower rate than D) cannot be exactly predicted

The welfare loss of a tariff equals that of an import quota that leads to the same level of imports

Indicate whether the statement is true or false