One of the advantages of monetary policy over fiscal policy is that
A. monetary policy allows the Fed to limit government spending so that government budget deficits are reduced.
B. monetary policy must be approved by Congress, which prevents bad monetary policy from taking effect.
C. the Fed can react more quickly than the legislature can.
D. monetary policy does not produce inflation, whereas fiscal policy does.
Answer: C
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With respect to economic freedom, which of the following is TRUE?
A) Three out of four people live in nations with governments that grant residents high degrees of economic freedom. B) About three dozen nations with governments unwilling to grant much in the way of economic freedom are home to two-thirds of the world's population. Even so, these countries produce over 50 percent of the world's output. C) Where governments do not grant residents a high degree of economic freedom, economic growth rates tend to be above the annual average for the world's nations. D) As economic freedom increases, so does a nation's prospects for economic growth.
Read Eye on Price Regulation on p. 185 and explain why a mismatch between intention and outcome is inevitable if a price regulation seeks to block the laws of supply and demand
What will be an ideal response?
An economy that contains both perfect and imperfect competition and both regulated and non regulated industries is known as a
a. traditional economy. b. mixed economy. c. market economy. d. conglomerate economy.
The velocity of money increases with a _____, other things constant
a. fall in the inflation rate b. rise in the inflation rate c. rise in the employment rate d. fall in the exchange rate e. rise in the real interest rate