"Monetary policy can be described either in terms of the money supply or in terms of the interest rate.". This statement amounts to the assertion that
a. shifts of the money-supply curve cannot occur if the Federal Reserve decides to target an interest rate.
b. the aggregate-demand curve will not shift in response to Federal Reserve actions if the Fed decides to target an interest rate.
c. changes in monetary policy aimed at contracting aggregate demand can be described either as decreasing the money supply or as raising the interest rate.
d. the activities of the Federal Reserve's bond traders are irrelevant if the Federal Reserve decides to target an interest rate.
c
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In the figure above, the equilibrium exchange rate is expressed as $1 U.S. equals
A) $2.00 Canadian. B) $1.50 Canadian. C) $0.50 Canadian. D) none of the above
A point inside a production possibilities curve indicates
A) resources are not being used efficiently. B) resources are being used very efficiently. C) opportunity costs are constant. D) an output combination that is unobtainable with the current resource and technology levels
In general, countries with well-defined property rights, less government regulation, and lower taxes have
A. More corruption and crime. B. Higher rates of economic growth for the entire population. C. Higher per capita incomes. D. Higher rates of investment.
Refer to Figure 5.1. All else equal, an increase in total factor productivity will cause a
A) shift from PF1 to PF2. B) shift from PF2 to PF1. C) movement up and to the right along PF1. D) movement down and to the left along PF2.