Under the monetary growth rule proposed by the monetarists, the money supply would grow each year at a constant rate equal to the long-run rate of growth of
A) inflation.
B) real GDP.
C) interest rates.
D) employment.
Answer: B
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After WWI, what was the difference between the British and the French in terms of currency values?
A) The French devalued the franc from prewar levels; the British did not. B) The British devalued the pound from prewar levels; the French did not. C) The French depreciated the franc from prewar levels; the British did not. D) The British depreciated the pound from prewar levels; the French did not.
Product differentiation helps determine the slope of the demand curve facing a firm in monopolistic competition
a. True b. False
Given Keynesian assumptions about the shape of the aggregate supply curve and an economy suffering a recession, which of the following is most likely to occur if the Fed pursues expansionary monetary policy?
A. The equilibrium price level and output will both increase until full employment is reached. B. The equilibrium price level and output will both decrease. C. The equilibrium price level will increase but output will stay the same. D. The equilibrium output will increase but the price level will stay the same until full employment is reached.
Refer to Figure 13A.1. Moving from K0 to K1:
A. economic growth stops. B. saving becomes negative. C. capital stock continues to increase. D. depreciation starts to decline.