The monetarist transmission mechanism through which monetary policy affects the price level, real GDP, and employment depends on the
direct impact of changes in the money supply on aggregate demand
You might also like to view...
Assuming perfect capital mobility and flexible exchange rates, then
a. monetary policy is ineffective while fiscal policy is highly effective. b. fiscal policy is completely ineffective while monetary policy is highly effective. c. both monetary policy and fiscal policy are effective. d. monetary policy is less effective than fiscal policy.
Airlines that restrict members' ability to use frequent flyer miles during holiday periods likely do so because: a. the opportunity cost to airlines of filling seats with frequent flyers is lower at these times
b. the opportunity cost to airlines of filling seats with frequent flyers is higher at these times. c. passengers have more transportation alternatives available to them at these times. d. airlines want to protect their most loyal customers from the discomfort of overcrowded airplanes.
The burden of a tax is
a. the amount of revenue that the government raises from the tax. b. what it would cost in alternative tax revenue to provide the same level of service. c. greater as the total revenue from the tax decreases. d. the amount the taxpayer would have to be given to be just as well off in the presence of the tax as in its absence.
When demand is elastic, if we were to raise price, total revenue would ______; when demand is inelastic, if we were to raise price, total revenue would _______.
Fill in the blank(s) with the appropriate word(s).