The irrelevance of monetary changes for real variables is called monetary neutrality. Most economists accept monetary neutrality as a good description of the economy in the long run, but not the short run
a. True
b. False
Indicate whether the statement is true or false
True
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In order to draw an individual's budget line, we must know
A) prices and preferences. B) prices and income. C) income and preferences. D) prices, income, and preferences.
Scarcity means
a. unlimited wants and unlimited available resources. b. unlimited wants and limited available resources. c. limited wants and limited available resources. d. limited wants and unlimited available resources.
Members of the Federal Reserve Board of Governors are appointed to 14-year terms to provide a level of isolation from political influence.
a. true b. false
If Bank A sells a $100,000 U.S. Treasury bond to the Fed, Bank A's reserves will:
A. increase by $100,000. B. not change. C. decrease. D. increase by less than $100,000.