The empirical evidence suggests that periods of high productivity growth will cause which of the following in the short run?
A) higher markups
B) lower unemployment
C) constant real wages
D) greater equality in wages
E) none of the above
B
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People can reduce the inflation tax by
a. reducing savings. b. increasing deductions on their income tax. c. reducing cash holdings. d. None of the above is correct.
If banks' desired reserve ratio increases from 0.10 to 0.15, the public still desires to hold the same amount of currency, the money supply will:
A. not change. B. either increase or decrease. C. decrease. D. increase.
The 2009 fiscal stimulus bill represented approximately
a. 5.5% of GDP and was designed to close the expansionary gap. b. 5.5% of GDP and was designed to close the recessionary gap. c. 7.8% of GDP and was designed to close the expansionary gap. d. 7.8% of GDP and was designed to close the recessionary gap.
Keynes believed that saving is
A) more responsive to changes in income than to changes in interest rates. B) less responsive to changes in income than to changes in interest rates. C) equally responsive to changes in income and to changes in interest rates. D) dependent only on changes in interest rates.