According to the quantity theory of money and prices, a 2 percent increase in the money supply ultimately leads to
A) a 2 percent increase in real GDP.
B) a 2 percent increase in wages.
C) a 2 percent increase in the price level.
D) a 2 percent increase in velocity.
C
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Of the following groups, who gains from rent controls?
A) landlords B) construction workers and their union leaders C) poor people who have a hard time earning enough income to pay high rents D) high-income people who live in rent-controlled apartments
What is the meaning of "a defective telescopic faculty," as described by A.C. Pigou?
a. Persons are unable to plan rationally for consumption. b. Persons zero in on something and cannot consider alternatives. c. Persons seek long-term goals and ignore present problems. d. Persons are unable to give adequate weight to the future.
Unlike the practice in many other countries, in the United States:
A. the agency responsible for monetary policy is not directly controlled by the government. B. only monetary policy is used to influence the economy, and fiscal policy is not allowed. C. the agency responsible for fiscal policy is not directly controlled by the government. D. only fiscal policy is used to influence the economy, and monetary policy is not allowed.
Which of the following would be most likely to induce Congress and the president to conduct expansionary fiscal policy? A significant
A) decrease in investment spending. B) decrease in oil prices. C) increase in consumption spending. D) increase in net exports.