What Is the Appropriate Monetary Policy Response to a Situation

question 7

Multiple Choice

What is the appropriate monetary policy response to a situation with deficient financial liquidity,when there is a liquidity trap?

• A) an open market sale of government bonds
• B) a decrease in the interest rate on reserves
• C) an open market purchase of government bonds
• D) an increase in the interest rate on reserves

Recognize the major players in the international trade of goods and services.

Understand the balance of payments and its components.

Grasp the impact of tariffs, quotas, and other trade restrictions on international trade.

Recognize the importance of cultural and language differences in international business activities.