According to mainstream economists, a restrictive monetary policy might be frustrated, wholly or in part, by:
A. Treasury sales of gold bullion.
B. a Treasury surplus.
C. the desire of households and businesses to hold smaller money balances.
D. a decrease in V.
C. the desire of households and businesses to hold smaller money balances.
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The inflation associated with the oil embargoes of the 1970s illustrated the _____ of the downward-sloping Phillips curve in the long run, as unemployment _____ during this period
a. validity; fell b. validity; rose c. fallacy; rose d. fallacy; fell e. fallacy; did not change
If a perfectly competitive firm experiences a permanent increase in demand, profits will become negative in the short run, and in the long run adjustment some firms would exit from the market, causing the supply curve to shift inwards
Indicate whether the statement is true or false
The stock of money people hold to take advantage of expected future changes in the price of bonds, stocks, or other nonmoney financial assets is the:
a. unit-of-account motive for holding money. b. precautionary motive for holding money. c. speculative motive for holding money. d. transactions motive for holding money.
If it costs Microsoft $800 million to bring a new version of Windows to market, and if the marginal cost of producing one unit were $1, the ATC of producing 10 million units would be approximately ______.
Fill in the blank(s) with the appropriate word(s).