If expectations are rational, can monetary and fiscal policy makers accurately control the effects their policies have on unemployment?
a. Yes, provided they announce policies in advance
b. Yes, both policies are effective in altering unemployment in the desired ways.
c. No, because these effects depend on whether and to what extent people are fooled by those policies.
d. No, only fiscal policy can alter unemployment.
c
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Consumer equilibrium occurs at: a. the point where the indifference curve crosses the budget line from below. b. any point of intersection between an indifference curve and the budget line. c. the midpoint of every indifference curve
d. the point of tangency between an indifference curve and the budget line.
A decrease in U.S. interest rates will, other things equal, tend to: a. lower the foreign exchange value of the dollar. b. help U.S. exporters
c. cause a net outflow of capital from the U.S. d. do all of the above.