Sally lost her job when her company went out of business because of a recession. This is an example of

Which statement is a good argument in support of policy activism?

A) Policy lags are generally longer than the time it takes the self-correcting mechanism to work. B) Activist policies help to ensure stability of the real interest rate. C) Well-considered policies can assist the economy's self-correcting mechanism, thus reducing the variability of inflation and unemployment. D) all of the above E) none of the above

Based on the Saving-Investment Diagram, if the world real interest rate is indicated by C, then ________

A) the difference between values H and D measures the net capital outflow B) the difference between values H and D measures the trade deficit C) the domestic real interest rate is indicated by B D) the difference between values H and F measures the trade deficit E) none of the above