A believer in the need for a CGRR of the money supply policy must be ________ about the ability of the private economy to self-stabilize and ________ about the accuracy of discretionary stabilization policy

Japan can use all of its resources to produce 100 videos or 400 shoes. China can use all of its resources to produce 25 videos or 200 shoes

Which nation has the comparative advantage in shoes and which nation has the comparative advantage in videos?

Which of the following is false about a liquidity trap situation: a. Quantitative easing might be a more effective strategy to stimulate the economy than buying short term government securities. b. The Fed can lower both short term and long term interest rates by using quantitative easing. c. The Fed cannot easily reduce the fed funds interest rate

d. Quantitative easing may be able to affect long term interest rates even when the Fed is unable to appreciably lower short term interest rates.