Active monetary policy

a. is when central banks purposefully choose to only stabilize money and price levels through monetary policy.
b. has a real effect on the economy in the long run.
c. is when central banks take orders from the ruling party on how to conduct monetary policy.
d. is the strategic use of monetary policy to counteract macroeconomic expansions and contractions.
e. is when central banks only use fiscal policy to try to influence the economy.

Atrough in the business cycle occurs when

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.

Amazon inc. does not currently pay a dividend. analysts expect amazon to commence paying annual dividends in three years. the first dividend is expected to be $2 per share. dividends are expected to grow from that point at an annual rate of 4% in perpetuity. investors expect a 12% return from the stock. what should the price of the stock be today?