Which of the following are TRUE regarding Milton Friedman's k-percent money targeting rule?
i. Currently this policy is used by many policy makers.
ii. This rule sets the growth rate of the quantity of money independently of the economy's behavior.
iii. For this policy to work well, the velocity of circulation must be stable.
A) ii and iii B) i and ii C) i only D) ii only E) iii only
A
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Half of all your potential customers would pay $10 for your product but the other half would only pay $8 . You cannot tell them apart. Your marginal costs are $4 . If you set the price at $8, the expected profit is:
a. $3 b. $4 c. $5 d. $6
An increase in the equilibrium price and the equilibrium quantity would be caused by an increase in demand
a. True b. False Indicate whether the statement is true or false
Relatively high interest rates in the United States contributes to a strong U.S. dollar (less dollars per another currency) and this may lead to a deficit on the U.S. current account
Indicate whether the statement is true or false
Average consumption in an economy is best measured by ________, while average productivity in an economy is best measured by ________.
A. output per person; output per worker B. total output; output per worker C. output per worker; total output D. output per worker; output per person