In the monetary small open-economy model with a fixed exchange rate, the domestic
A) government loses control over the level of domestic government spending.
B) government loses control over the level of domestic taxes.
C) government loses control over the level of domestic government spending and domestic taxes.
D) central bank loses control over the domestic stock of money.
D
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Which aspects of globalization help to increase growth in the world economy?
What will be an ideal response?
Which of the following would be an example of a principal trying to deal with a moral hazard problem?
a. The parents of an infant secretly place video cameras in their house before the baby-sitter arrives. b. An insurance company checks police records to determine if its policyholders have received traffic citations. c. An employer examines his workers' output on a daily basis. d. All of the above are correct.