Which of the following is a lesson that can be learned from monetary policy during the Great Depression?
a. Monetary policy should be changed frequently in response to economic fluctuations.
b. Prolonged periods of monetary contraction will retard economic growth.
c. Low interest rates will direct an economy toward recovery.
d. Monetary policy should focus on variables such as output and employment.
B
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Which of the following statements about natural monopolies is true?
A) Natural monopolies are only found in the markets for natural resources (like crude oil and coal). B) For natural monopolies, marginal cost is always below average cost. C) For natural monopolies, average cost is always increasing. D) Natural monopolies cannot be regulated.
A decrease in the price of a currency in terms of another under a flexible exchange rate regime is called:
a. capital flight. b. depreciation. c. revaluation. d. devaluation. e. currency adjustment.