Austrians would support the following policies as a means for more quickly ending the recession A. abolishing Fed open market operations and freezing the monetary base B. freezing prices and wages at their current levels instead of trying to reflate them back to their former level during the boom C. raising taxes in order to reduce government deficits D. both A and B

Question 38 If you go to the bank and notice that a dollar buys more Ghanaian cedis than it used to, then the dollar has appreciated. Other things the same, the appreciation would make Americans less likely to travel to Ghana. O appreciated. Other things the same, the appreciation would make Americans more likely to travel to Ghana. depreciated. Other things the same, the depreciation would make Americans less likely to travel to Ghana. depreciated. Other things the same, the depreciation would make Americans more likely to travel to Ghana.

China has a current trade surplus and considering only the direct effect on income, if the Chinese National bank used expansionary monetary policy, the policy would tend to: A. decrease the exchange rate and increase the trade surplus.B. increase the exchange rate and increase the trade surplus.C. decrease the exchange rate and decrease the trade surplus.D. increase the exchange rate and decrease the trade surplus. The recent increase in the Fed Funds rate at the direction of the Federal Reserve tends to: A. lower U.S. prices, make exports more expensive relative to imports, and lower the value of the dollar.B. lower U.S. prices, make exports cheaper relative to imports, and raise the value of the dollar.C. raise U.S. prices, make exports cheaper relative to imports, and raise the value of the dollar.D. raise U.S. prices, make exports more expensive relative to imports, and lower the value of the dollar. one Of the four choices below, which causes a shift in the Supply of dollars to…

Question 1It is often said by economists that fixed exchange rates make monetary policy totally ineffective as a stabilization tool. Explain why you agree or disagree with this statement. Assume an open economy. Keynes favoured fiscal policy over monetary policy to stabilize the economy and fixed exchange rates over flexible exchange rates. Is it consistent or inconsistent to pair fiscal policy with fixed exchange rates and monetary policy with flexible exchange rates? Explain why.

Show graphically how fiscal policy works with perfect capital mobility and fixed exchange rates.