Monetary neutrality is
What will be an ideal response?
the idea that the money supply does not affect real economic variables.
You might also like to view...
If the NCAA prohibits colleges and universities from offering more than room, board, and tuition to outstanding high school football and basketball players, the recruitment practices of athletic departments will
A) adhere more closely to high ethical standards. B) become constantly more complex and costly. C) make the athletes better off in the long run. D) make the athletes better off in the short run. E) shift to favoring academic ability over athletic ability.
What do you mean by the term 'free market'? a. It refers to the process whereby buyers and sellers interact or trade under government regulation
b. It refers to the process whereby buyers and sellers voluntarily interact or trade without any interference or restrictions. c. It refers to a market where buyers and sellers pay for goods and services in kind and not in cash. d. It refers to a market where assets are traded after they have been sold in the primary market. e. It refers to a market where the demand for the product being traded is not affected by a change in the price of the product.
Suppose that the equilibrium interest rate is 8 percent, but the actual interest rate is 5 percent. Very quickly,
a. bond prices fall b. bond prices will rise c. the interest rate will begin to fluctuate until bondholders reduce their demand for money d. the primary bond market will start its adjustment process e. the supply and demand for money will both increase
The price equals marginal cost rule for profit maximization is a specific example of which core principle?
A. The Principle of Comparative Advantage B. The Cost-Benefit Principle C. The Scarcity Principle D. The Efficiency Principle