Large differences in inflation rates among countries are almost always the result of large differences in
A. productivity.
B. the growth rates of nominal money supplies.
C. the growth rates of real money demand.
D. real income growth.
Answer: B
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If the Fed announces a new policy of slower monetary growth it will result in lower inflation and no change in output only if
A) the policy is credible and price expectations are reduced. B) the policy is time consistent and expectations remain constant. C) the policy is time inconsistent and expectations increase. D) Both A and B are correct.
Refer to Scenario 7.3. What is the total cost of producing 200 units of output?
A) 100 B) 1000 C) 1500 D) 2000 E) none of the above
Which of the following is an example of monetary policy?
A. Changes in income tax rates B. The central bank buying government bonds C. Raising social security payments in response to increased inflation D. Changes in government spending on public works projects
What the text calls "the economic way of thinking" is primarily
What will be an ideal response?