Believers in a fixed-rule approach to stabilization policy propose that

a. Congress should balance the high employment budget.
b. the Fed should keep the money supply growth constant.
c. the economy be stabilized by automatic mechanisms.
d. All of the above are correct.

d

Economics

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Average cost pricing for a natural monopoly will results in ______.

a. the socially efficient level of output b. a less than socially efficient level of output c. a greater than socially efficient level of output d. the firm suffering economic losses e. the firm earning economic profit

Economics

Assuming that the value effect dominates, the current account will increase if

A) the real exchange rate decreases. B) the real exchange rate increases. C) disposable income increases. D) exports fall. E) domestic prices fall.

Economics