Which of the following statements is most correct?
A. A fixed exchange rate policy is a lack of a monetary policy.
B. A fixed exchange rate policy is appropriate for a country that lacks a central bank.
C. A fixed exchange rate policy is a monetary policy.
D. A fixed exchange rate policy is only appropriate for countries with little international reserves.
Answer: C
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The land of Mordor increases its capital stock. As a result, the long-run aggregate supply curve shifts ________ and so does the ________ curve
A) rightward; aggregate demand B) leftward; aggregate demand C) rightward; short-run aggregate supply D) leftward; short-run aggregate supply
If the payoff to the United States to pursuing nuclear weapons is 100 if the USSR does not pursue nuclear weapons and 50 if the USSR does, and the payoff to the USSR to pursuing nuclear weapons is 80 if the USA doesn't pursue nuclear weapons and 30
if the USA does, what is the non-cooperative equilibrium? A) The USA pursues nuclear weapons, the USSR does not. B) The USA pursues nuclear weapons, the USSR pursues nuclear weapons. C) The USA does not pursue nuclear weapons, the USSR does not pursue nuclear weapons. D) The USA does not pursue nuclear weapons, the USSR does pursue nuclear weapons.