In the short run, an expansionary monetary policy by the Fed would:
a. reduce unemployment at the cost of higher inflation.
b. reduce inflation at the cost of a rise in the natural rate of unemployment.
c. reduce inflation and leave the natural unemployment rate unchanged.
d. reduce both inflation and unemployment.
e. increase both inflation and unemployment.
a
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The ________ specializes in making long-term loans for capital investment projects that do not have private financial support
A) International Monetary Fund B) Federal Reserve Bank C) World Bank D) European Central Bank
Suppose that the U.S. government acquires more foreign currency. How does this change affect the balance of payments accounts?
A) The capital and financial account is negative. B) The capital and financial account is positive. C) The official settlements account balance is negative. D) The official settlements account balance is positive. E) The balance of payments account sum to a positive number equal to the value of the additional foreign currency the government has obtained.