In the 1960s, the monetarist school of thought held that
A) monetary and fiscal policy could explain most of the output fluctuations in U.S. history.
B) there is a long-run tradeoff between inflation and unemployment.
C) efforts to fine-tune the economy are likely to do more harm than good.
D) all of the above
E) none of the above
C
You might also like to view...
Mark and Anthony are participating in a trust game. Mark is given a locked box containing five $100 bills and a key. He can either unlock the box himself or he can give it to Anthony
Anthony can either unlock the box himself or return it to the moderator of the game. If Mark unlocks the box himself, he will get $200 and Anthony will get $100 while the rest will be taken back. If Anthony unlocks the box, they will receive $250 each. If Anthony returns the box to the moderator, he will receive $300, while Mark will not get any money. What will the equilibrium outcome of this game be?
The Lucas supply function states that real output can change from its fixed level
A. only if there is a positive price surprise. B. only if there is a negative price surprise. C. only if there is no price surprise. D. Both A and B are possible.
Which of the following can help to explain why higher inflation may lead to currency appreciations?
A) The interest rate is not the prime target of monetary policy. B) Most central banks adjust their policy interest rates expressly so as to keep inflation in check. C) Central banks increase the money supply leading to overshooting of the exchange rate. D) Inflation will increase the purchasing power of a currency. E) The world market does not adjust their currency trade to reflect inflation.
Which of the following statements is TRUE regarding the textbook used in this course?
A) The textbook presents only economic theory, so no value judgments are involved in the text. B) The textbook does not include normative statements. C) The microeconomic section of the book includes only positive analysis while the macroeconomic section includes normative analysis. D) The selection of topics included in the book involves value judgments as well as economic theory.