It is more certain how expansionary monetary policy will affect the current account than how expansionary fiscal policy will affect it

Strategic trade policy requires ALL of the following EXCEPT

A) subsidies set before output levels. B) non-retaliation of the trading partner. C) credible actions on the part of the subsidizing government. D) incomplete information on the part of the government.

If the Fed wishes to maintain its interest rate target in the face of increased money demand it would likely

a. increase the money supply. b. decrease the money supply. c. more stringently enforce already existing banking regulations. d. propose new banking regulations. e. become more lax when it enforces already existing banking regulations.