The dramatic rise in the dollar between 1981 and 1986 was the result of a(n)
a. a tight monetary and a tight fiscal policy.
b. an expansive monetary and an expansive fiscal policy.
c. an expansive monetary and a tight fiscal policy.
d. a tight monetary and an expansive fiscal policy.
d
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How do we show the short-run impact of an increase in spending growth in our aggregate demand and aggregate supply model?
A. The AD curve shifts to the right, and inflation and real growth both decrease along the SRAS curve. B. The AD curve shifts to the right, and inflation and real growth both increase along the SRAS curve. C. The AD curve shifts to the left, and inflation and real growth both decrease along the SRAS curve. D. The AD curve shifts to the left, and inflation and real growth both increase along the SRAS curve.
Predatory pricing: a. occurs when a firm increases price in order to exploit inelastic demand by consumers
b. occurs when a firm prices below average variable cost in order to drive competitors out of the market. c. is difficult to distinguish from vigorous competition in practice. d. is characterized by both (b) and (c).