Which of the following statements is accurate?
A. Fixed exchange rates greatly constrain a country's ability to pursue an independent monetary policy.
B. Fiscal policy is highly effective with fixed exchange rates and unresponsive international capital flows.
C. Contractionary monetary policy is effective under a fixed exchange-rate regime.
D. Fiscal policy is not effective with fixed exchange rates in an environment of highly responsive international capital flows.
Answer: A
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Economists refer a to a market where buying and selling take place at prices that violate government price regulations as
A) a noncompetitive market. B) an outlaw market. C) a black market. D) a restricted market.
Public policy
a. can reduce both frictional unemployment and the natural rate of unemployment. b. can reduce frictional unemployment, but it cannot reduce the natural rate of unemployment. c. cannot reduce frictional unemployment, but it can reduce the natural rate of unemployment. d. cannot reduce either frictional unemployment or the natural rate of unemployment.