A farmer who takes a long position in the futures market is hedging against a potential reduction in prices

Assuming short-run sticky prices, the same monetary policy result may be achieved by targeting the money supply or the nominal rate of interest whenever:

a. the demand for money is stable. b. interest income is not taxable. c. changes in the supply of money are small and predictable. d. real income is constant.

The leakage and injections approach implies that deficit spending by the government must be financed by

A) private investment less private savings plus net exports. B) private saving less private investment plus net exports. C) the trade deficit must always offset the government deficit. D) B and C.