Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, these flows would have had the following effect on the reserves account and monetary base
a. Reserves account would rise and monetary base would fall.
b. Reserves account would not change and monetary base would not change.
c. Reserves account would fall and monetary base would not change.
d. Reserves account would fall and monetary base would fall.
e. Reserves account would fall and monetary base would rise.
.B
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Which of the following is consistent with an active approach to policy?
a. The natural rate of unemployment being uncertain b. Wages and prices being relatively quick to adjust c. The short-run aggregate supply curve being slow to shift in the presence of a recessionary gap d. The size of the multiplier being irrelevant e. The aggregate demand curve being slow to shift in the presence of a recessionary gap
In 1981, in San Francisco Solano, Argentina, about 1,800 families took over a piece of wasteland. The government was able to deed 60 percent of this land to some families while the remaining part could not be deeded. The resulting houses varied greatly, based on whether the residents received title. Those who received title also behaved differently, having fewer children, and the children
experienced more education and better health. This is an example of the results from: a. scarcity. b. economic growth. c. economic freedom. d. private property rights. e. improved quality of life.