Which of the following disinflationary monetary policies would classical economists prefer?
A) A cold turkey approach that is announced and credible.
B) A cold turkey approach that is announced, but not credible.
C) A gradual approach that is announced and credible.
D) A gradual approach that is unannounced.
A
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In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. In the current market for peanut butter, the price rises and the quantity increases
This set of results means that A) demand increased by more than supply decreased. B) supply decreased by more than demand increased. C) demand increased by more than supply increased. D) supply decreased by more than demand decreased.
Phil's filling station gas station operates on a patch on the highway in a patch where there were no gas stations close by. It enjoyed high profits. After a while, Glen's gas another gas station opened up close by. The profits for the first gas station are likely to decrease because
a. it has to lower prices, since its product is now more price elastic b. It has to lower prices since its product is now more price inelastic c. due to the increased availability of substitutes d. both A&C
Most power in the Federal Reserve System is held by the
A. president and Congress. B. Secretary of the Treasury, who appoints the members of the Board of Governors. C. Board of Governors of the system. D. member banks of the system.
Refer to the above figure. At a price of $2, excess quantity demanded equals
A. 12. B. 0. C. 15. D. 3.