Monetary policy under a fixed exchange-rate regime will be
A. more effective than fiscal policy.
B. more powerful with high capital mobility than with low capital mobility.
C. constrained and relatively ineffective.
D. likely to cause large and persistent deficits.
Answer: C
Economics
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In the mathematical formulation of the short-run production function:
A) the quantity of output is usually assumed to be fixed. B) the quantity of capital employed is usually assumed to be fixed. C) the quantity of both labor and capital employed are usually assumed to be fixed. D) the quantity of both labor and capital must be allowed to vary so that output can vary in the short run.
Economics
The most inclusive of all price indexes is
a. the GDP deflator b. the price level c. the CPI d. nominal index e. real index
Economics