The Friedman natural rate theory is built upon
A) rational expectations.
B) adaptive expectations.
C) flexible wages and prices.
D) the assumption of one Phillips curve.
E) b and c
E
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A comparative advantage is the ability of one person or nation to produce a good at an opportunity cost that is lower than that of another person or nation
Indicate whether the statement is true or false
Legislators are not likely to substitute money transfers to low-income people for in-kind benefits (e.g., food stamps, health care) because
A) low-income people generally do not know how to manage money effectively. B) low-income people prefer in-kind transfers. C) special interest groups benefit from the system of in-kind transfers. D) giving cash to the poor would necessitate a tax increase.
Why do countries peg their currencies, and what problems can result from pegging?
What will be an ideal response?
Assume that the Paris First National Bank has deposits of $20 million. If the legal reserve requirement is 20 percent and the bank is fully loaned out, the bank will have outstanding loans totaling
a. $2 million b. $4 million c. $10 million d. $16 million e. $20 million