From a rational expectations perspective, an easy money policy is likely to be completely:
A. Ineffective unless the increase in the money supply is unanticipated
B. Effective unless the increase in the money supply is unanticipated
C. Ineffective unless the increase in the money supply is anticipated
D. Effective unless the increase in the money supply is anticipated
A. Ineffective unless the increase in the money supply is unanticipated
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Answer the following statements true (T) or false (F)
1. The difference between the ATC and the AVC must represent the AFC. 2. Average revenue is synonymous with price. 3. Marginal revenue is the increase in total revenue per additional unit of input. 4. Average revenue times total output equals total profit. 5. Marginal product can never fall below zero.
A political structure's enfranchisement refers to:
A. who has the right to vote. B. which territories are protected under particular laws. C. which territories are restricted by particular laws. D. the government's ability to expand its power.
When firms are neither entering nor exiting a perfectly competitive market,
a. total revenue must equal total cost for each firm. b. economic profits must be zero. c. price must equal the minimum of marginal cost for each firm. d. Both a and b are correct.
The profit maximizing behavior of a monopoly is different from that of a perfectly competitive firm in that a monopoly can
A. only choose the desired output, while a competitive firm can control only price. B. control the position of its demand schedule, but a competitive firm cannot. C. control the desired price and output to maximize profits, but a perfectly competitive firm can only choose the desired output. D. only choose the desired price, while a competitive firm can control only output.