Which of the following statements is true?
A) Unlike monetary policy, fiscal policy is not subject to lags.
B) Like monetary policy, fiscal policy is also subject to the same types of lags.
C) In general, fiscal policy lags are much shorter than monetary policy lags.
D) Although both monetary and fiscal policies are subject to lags, fiscal policy lags are easier to eliminate.
Ans: B) Like monetary policy, fiscal policy is also subject to the same types of lags.
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By definition, currency depreciation occurs when the value of
A) all currencies fall relative to gold. B) one currency falls relative to another currency. C) one currency rises relative to another currency. D) gold falls relative to the value of currencies.
A typical firm in a cartel will hold which of the following attitudes?
A) If everyone cheats, I'm better off, and so is everyone in the cartel. B) If I alone cheat, I'm better off; if everyone cheats, I'm worse off. C) I can never do better for myself than following agreed-upon cartel rules. D) If I suspect others are planning to cheat, I'll do best for myself by deciding not to cheat.