What is/are the advantage(s) of the gold standard?
(a) The government can print money as required by cyclical fluctuations in domestic markets.
(b) Floating exchange rates.
(c) It requires monetary discipline.
(d) All of the above.
(c)
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As a result of an increase in demand from D2 to D1 in Figure 36.4, ceteris paribus, the price of a $40,000 U.S. computer system, in terms of Japanese yen, would: =
A. Decrease in price by 200,000 million yen. B. Increase in price by 200,000 million yen. C. Increase in price by 800,000 yen. D. Decrease in price by 800,000 yen.
The hypothesis that people know the "true model" of the economy and that they use this model to form their expectations of the future is the
A. rational-expectations hypothesis. B. real business cycle hypothesis. C. Lucas supply function hypothesis. D. Laffer hypothesis.