Suppose that reducing inflation by 2 percentage points would cost a country 5 percent of its annual output. This country's sacrifice ratio is

The gold standard is an example of

A) the Bretton Woods System. B) a floating exchange rate system. C) a managed float exchange rate system. D) a flexible exchange rate system. E) a fixed exchange rate system.

To reassure investors who were unwilling to buy mortgages in the secondary market, the U.S. Congress used two government sponsored enterprises, Fannie Mae and Freddie Mac, to stand between investors and banks that grant mortgages

Fannie Mae and Freddie Mac A) sell bonds to investors and use the funds to purchase mortgages from banks. B) sell bonds to banks and use the funds to purchase mortgages from investors. C) sell mortgages to banks and use the funds to purchase bonds from investors. D) sell mortgages to investors and use the funds to purchase bonds from banks.