Monetarists believe that:
a. velocity is constant.
b. velocity is highly predictable.
c. there are three motives for demanding money.
d. changes in the money supply cause changes in velocity.
e. a change in the money supply can affect real GDP.
b
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Which of the following would increase the consumption component of U.S. GDP?
A. A restaurant in Denver purchases a bottle of California wine to include on its wine list. B. The U.S. government buys a bottle of California wine to serve at a state dinner in the White House. C. A person in Paris purchases a bottle of California wine. D. You purchase a bottle of California wine.
Stagflation at the end of the 1970s was marked by increasing inflation and unemployment
Indicate whether the statement is true or false
Why is the supply of loan able funds not perfectly inelastic? (In other words, why is the supply curve up sloping?)
What will be an ideal response?
A key objective of the gold standard was to
A. create a fixed exchange rate system between countries. B. allow nations to maintain their gold reserves. C. create a flexible exchange rate system between countries. D. allow nations to tax its citizens in gold.