Which of the following changes should make activist policy makers more confident in their capacity to make good policy recommendations?
A) structural change in the economy
B) changes in multipliers
C) a longer estimated lag for monetary policy
D) none of the above
D
Economics
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Assume that the U.S. interest rate is 5%, the European interest rate is 2%, and the future expected exchange rate in one year is $1.224. If the spot rate is $1.24, then the expected dollar return on euro deposits is:
a. 4% b. 7.1% c. 0.71% d. 0.129%
Economics
Small savers who only have enough money to buy a few individual financial assets can use ________ to diversify
A) mutual funds B) one company's bonds C) Treasury securities D) one company's stock
Economics