Empirical evidence that changes in monetary policy do not cause rapid price adjustments ________
A) is consistent with the Keynesian emphasis on short-run economic fluctuations
B) suggests that policymakers need not worry much about inflation
C) remains limited and unconvincing
D) is consistent with the classical dichotomy
E) none of the above
A
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The trade-offs in the effect of unemployment insurance are:
A. it prolongs the job search, but reduces the number of job searches a person has to make. B. it shortens the job search, but lengthens the number of times a person will switch careers. C. it is free money and makes people lazy, but without it people would starve. D. it reduces incentive to accept a job, but reduces the number of job offers typically made.
According to the equation of exchange, a contractionary monetary policy must be adopted to offset any decrease in the velocity of money
a. True b. False Indicate whether the statement is true or false
If the interest rate is 6 percent, the net present value of $100 to be received two years from now is
a. $79.72. b. $86. c. $89. d. $100.
Assuming a firm would not survive without protection, what should the government do if the present value of the profits and value added from operating an infant industry firm exceed the deadweight loss of imposing protection?
a. It should impose the tariff—the gains exceed the losses. b. It should not impose the tariff—the losses exceed the gains. c. If it imposes the tariff, it may actually create more problems that cannot be foreseen—do not impose the tariff. d. The government should just ban all imports of that product until the "infant" is able to compete on its own.