If society decides it wants more of one good and all resources are fully utilized, then
A) additional resource supplies will have to be found.
B) it is unable to do this unless technology advances.
C) it has to give up some of another good and incur some opportunity costs.
D) more unemployment will occur.
C
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When expansionary monetary policy pushes interest rates to artificially low levels,
a. the demand for and prices of interest-sensitive goods, like housing, will increase. b. people will delay their purchases of interest-sensitive goods, like housing, into the future. c. the demand for interest-sensitive goods, like housing, will increase, but their prices will decline. d. the demand for and prices of interest-sensitive goods, like housing, will decline.
There are limits to the ability of monetary authorities to use sterilized intervention in the case of a surplus because
A. the central bank's ability to constantly obtain foreign currency for the sterilized intervention is constrained. B. the central bank may be unwilling to increase its holdings of domestic currency. C. foreign countries will increase political pressures on the country to allow its currency to appreciate. D. the export level is fixed and it cannot be allowed to drop.