Which of the following statements is true about the misperceptions theory?
A) Both anticipated and unanticipated changes in the nominal money supply have real effects on the economy.
B) Neither anticipated nor unanticipated changes in the nominal money supply has real effects on the economy.
C) Unanticipated changes in the nominal money supply have real effects, but anticipated changes are neutral.
D) Anticipated changes in the nominal money supply have real effects, but unanticipated changes are neutral.
C
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The figure above shows the labor market in a region. For a minimum wage to change the wage rate and amount of employment, it must be
A) left to the forces of supply and demand. B) set above $6 an hour. C) set equal to $6 an hour. D) set below $6 an hour. E) set at $12 per hour.
Real economic activity at full employment is unaffected by changes in investment spending when
A) interest rates are low. B) velocity is flexible. C) inventories are low. D) prices are flexible.
A firm is most likely to experience economies of scale if its start-up costs are high and its marginal cost is ________.
A. low B. decreasing C. increasing D. high
Standardization of derivative contracts:
A. makes the premiums involved with these contracts increase. B. results in increased risk for the parties involved. C. makes them more difficult to understand and therefore leads to increased misuse. D. leads to greater liquidity and lower risk.