Question 1
Monetary policies are
◦ less effective when the exchange rate is flexible and the economy is open.
◦ more effective when the exchange rate is flexible and the economy is open.
◦ more effective when the exchange rate is flexible and the economy is closed.
◦ less effective when the exchange rate is fixed and the economy is open.
Question 2
If the Fed increases the money supply to fight recession, a floating exchange rate will aid the Fed in fighting recession because
◦ as the money supply is increased, the interest rate will decrease, and the price of U.S. exports will rise and the price of U.S. imports will fall.
◦ as the money supply is increased, the interest rate will decrease, and the price of U.S. exports will fall and the price of U.S. imports will rise.
◦ as the money supply is increased, the interest rate will decrease, and the price of both U.S. exports and U.S. imports will fall.
◦ as the money supply is increased, the interest rate will decrease, and the price of U.S. exports and U.S. imports will rise.
Running time on 100-meter sprint for men and women master athletes increases with age. Source: Korho
Masaccio, The Tribute Money.
Honoré Daumier, Fight between Schools, Idealism and Realism.
Enzymatic rate enhancements
Countercurrent Exchange
Rate order question