29)A country cannot have...

a.An independent monetary policy and perfect capital mobility.

b.A fixed exchange rate and an independent monetary policy.

c.All the options are possible.

d.A fixed exchange rate and perfect capital mobility.

30)The consumer price index is...

a.The ratio of nominal GDP to real GDP times 100.

b.Based on the change in the price of a fixed basket of goods and services over time.

c.The fall in the unemployment rate.

d.Always increasing at a constant rate of about two percent per year.

31)A sale and repurchase agreement seeks to...

a.Increase the monetary base permanently.

b.Reduce the monetary base for one day.

c.Reduce the monetary base permanently.

d.Increase the monetary base for one day.