Suppose a country switches from a fixed to a flexible exchange rate. Which of the following will occur as a result of this change?
A) Monetary policy will become a less effective tool for changing output.
B) A given change in government spending will now have a greater effect on output.
C) Both fiscal and monetary policy will become more effective in changing GDP.
D) Both fiscal and monetary policy will become completely ineffective in changing GDP.
E) none of the above
E
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According to the economic way of thinking,
A) the private sector is more important than the public sector. B) the public sector is more important than the private sector. C) the public sector cannot be adequately studied using economic theory. D) people in society strive to advance the projects they are interested in, and they will advance their interests through market institutions or the institutions of government.
Indifference curve slopes upward from left to right because consumers always prefer more of a good to less
a. True b. False Indicate whether the statement is true or false