Most of the pressure for a monetary growth rule has disappeared because since 1980
A) the relationship between movements in the money supply and movements in real GDP and the price level have become much stronger.
B) the relationship between movements in the money supply and movements in real GDP and the price level have become much weaker.
C) the relationship between movements in interest rates and movements in real GDP and the price level have become much stronger.
D) the relationship between movements in interest rates and movements in real GDP and the price level have become much weaker.
Answer: B
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The Obama administration increased the tax on the top income tax bracket from 35% to 39%
Supply and demand analysis predicts the impact of this change was a ________ interest rate on municipal bonds and a ________ interest rate on Treasury bonds, all else the same. A) higher; lower B) lower; lower C) higher; higher D) lower; higher
One interesting aspect of the California Gold Rush was
a. the initial absence of property rights to land. b. the use of indentured servants as a labor force in mines. c. the absence of violence in the gold fields. d. the formation of unions that negotiated wages and hours on behalf of miners. e. Both a and c are correct.
Which of the following statements is true?
A) Real GDP fluctuates around potential GDP. B) Potential GDP fluctuates around real GDP. C) Potential GDP is the same as real GDP. D) When all of the economy?s resources are fully employed, the value of production is called real GDP.
Recall the Application about the break-even price for growing switchgrass, a perennial grass that is native to the U.S. plains states and is used to create biofuel, to answer the following question(s).Recall the Application. If the minimum average variable cost for switchgrass farmers is $40 per ton and the current price is $35 per ton, in the long run the switchgrass farmer will:
A. exit the industry. B. operate and lose money. C. make a positive economic profit. D. make a zero economic profit.