93)If a country is committed to a fixed exchange rate, its monetary policy can focus on...

a. Stabilizing domestic inflation.

b.None of the other options.

c.Controlling the domestic money supply.

d.Eliminating domestic output gaps.

94)Capital's share of factor income is about one third. Last year, labour supply grew by one percent and the capital stock grew by two percent. If real GDP grew by three percent, the solow residual is...

a.5 percent.

b.1.33 percent.

c.1.67 percent.

d.2.5 percent.

95)If both real money demand and real money supply increase, then the equilibrium interest rate will...

a.Decrease.

b.Increase.

c.Stay the same.

d.Any of the other options are possible.