According to the rational expectations school, a correctly anticipated expansionary monetary policy will:
a. increase prices and real output
b. increase real output only in the short run.
c. have no effect on prices or real output.
d. decrease prices and real output.
e. lead only to a higher price level.
e
Economics
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Which of the following statements is true of the gains to trade?
A) The gains to trade expand as trading partners become more alike. B) The gains to trade shrink as trading partners become more alike. C) The trading nations can enjoy gains to trade even when none of these countries has a comparative advantage in the production of any good. D) The gains to trade are equal for all trading partners.
Economics
The U.S. dollar is the most important reserve currency in the world
a. True b. False Indicate whether the statement is true or false
Economics