The policy irrelevance proposition states that
A. anticipated changes in monetary policy are ineffective in changing real Gross Domestic Product (GDP).
B. only relatively large expected changes in monetary policy impact the economy.
C. in the short run unanticipated changes in monetary policy are ineffective in changing real Gross Domestic Product (GDP).
D. only statements from the White House have impact on the economy.
Answer: A
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A firm that produces chemical solvents creates some air pollution because of the emissions from its manufacturing facilities. A tax is imposed on the firm, equal to the costs of environmental damage caused by a unit of the emissions
What is the result? A) The quantity of chemical solvents produced now will be the efficient amount. B) Demand for the chemical solvents will increase. C) Demand for the chemical solvents will decrease. D) Consumers of the chemical solvents will be willing to pay the full amount of the tax, and so the quantity produced will be unaffected.
Capitalism is an economic system that:
A. gives private individuals and corporations the right to own productive resources. B. produces more consumer goods than capital goods. C. produces more capital goods than consumer goods. D. is characterized by government control of markets.
Economics is a social science that is concerned with:
of productive resources so there is a minimum level of income b. The best use of scarce resources paid for at the highest level of cost to consumers and businesses c. The best use of scarce resources to achieve the maximum satisfaction of economic wants d. Increasing the amount of productive resources so there is maximum output in society
The advent of the Internet in the second half of the 1990s has brought the stock market industry close to a state of ________________.
Fill in the blank(s) with the appropriate word(s).