According to the monetarist point of view
A. to avoid inflation, the Federal Reserve should create reserves at the same rate as the velocity of money.
B. velocity of money is not constant; therefore, the increase in the money supply should not be constant.
C. in the short run, increased unemployment and/or reduced inflation are the result of a reduction in the growth of the money supply.
D. in the short run, changes in the money supply can have no effect on output in the economy, only on prices.
C. in the short run, increased unemployment and/or reduced inflation are the result of a reduction in the growth of the money supply.
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For a given elasticity of supply, the more ________ the demand for the good, the share of the tax paid by the buyers is ________.
A) inelastic; larger B) inelastic; smaller C) elastic; larger D) elastic; smaller E) elastic; the same
Refer to Table 9-11. Prior to trade, what was the opportunity cost to produce 1 clock in Denmark?
A) 1/6 of a hat B) 1/2 of a hat C) 2 hats D) 6 hats
Some economists argue that federal government capital projects, which offer benefits over a number of years, should be financed through deficit financing
a. True b. False Indicate whether the statement is true or false
The cost of adding a third worker to a shift in a manufacturing plant is less than the current average cost of adding workers. If the third worker is added, the average cost for the manufacturing plant ______.
a. will rise b. will fall c. will remain unchanged d. cannot be known