The supply of money is determined by the Federal Reserve and is dependent on the demand for money.
Answer the following statement true (T) or false (F)
False
You might also like to view...
An increase in human capital will tend to cause which of the following?
A) increase labor productivity B) increase the standard of living C) increase economic growth D) all of the above
The demand for money is
A) positively related to the nominal interest rate. B) positively related to the real interest rate. C) positively related to the price level. D) negatively related to real GDP. E) negatively related to the price level.
According to the Taylor rule, the Fed will set the federal funds rate target based on which of the following?
A) an estimated long-run real interest rate B) the current deviation of the actual inflation rate from the Fed's inflation objective C) the proportionate gap between actual real GDP and a measure of potential real GDP D) all of the above
A declining parity ratio implies that the:
A. Prices paid by farmers rose faster than the prices that farmers received B. Prices received by farmers rose faster than the prices that farmers paid C. Productivity of farmers is declining D. Prices paid and received by farmers are both falling