Arbitrageur is someone who buys or sells foreign exchange in hopes of profiting from fluctuations in the exchange rate over time

Resource price differentials that do not trigger the reallocation of resources are known as

a. temporary differentials b. market differentials c. conditional differentials d. permanent differentials e. sustainable differentials

The coordination problem accompanying expansionary fiscal policy refers to

a. the tendency of increases in government expenditures to expand private sector output by an even larger amount. b. the possibility that demand stimulus programs will direct resources toward unproductive projects and areas of full employment. c. the possibility that borrowing to finance current spending will lead to lower future interest rates. d. the reluctance of Congress to approve increases in government spending during a recession.