As firms expect future profits to increase, they increase their investment. As a result, real GDP rises above potential GDP. If the Fed followed Friedman's k-percent rule, the Fed would
A) continue allowing the quantity of money to grow at "k" percent.
B) increase the quantity of money more than usual.
C) decrease the quantity of money.
D) raise the federal funds rate.
E) lower the federal funds rate.
A
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List and explain the three fundamental economic questions that must be answered by all economic systems
What will be an ideal response?
The square of the percentage market share of each firm summed over the 50 largest firms in a market is the
A) elasticity of demand value. B) elasticity of supply value. C) Herfindahl-Hirschman Index. D) four-firm concentration ratio. E) fifty-firm concentration ratio.
Which of the following is true of the per se rule?
a. The per se rule was used by U.S. courts from 1914 until the 1920s. b. The per se rule had the effect of making antitrust policy more liberal. c. According to the per se rule, activities that were potentially monopolizing tactics were illegal. d. The per se rule did not allow the mere existence of anti-competitive activities to be sufficient evidence for a guilty verdict. e. The per se rule was revived by Bush administration.
A “single tax” on land was proposed in the nineteenth century by
A. Lloyd George. B. Henry George. C. George Washington. D. George Sands.