A monetary growth rule means that
A) the Fed will lower interest rates if it thinks a recession is on the horizon.
B) the Fed will raise interest rates if it thinks the economy is growing faster than potential.
C) the money supply should grow at a constant rate.
D) the money supply should grow in response to economic conditions.
Answer: C
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Which of the following could potentially capture the value created in a market
a. Suppliers b. Industry rivals c. Buyers d. All of the above
Consumer surplus is created when
a. a person trades away a good that yields diminishing marginal utility b. a person's total utility increases when consuming an additional unit of a good c. a good is purchased at a price that is less than the price the consumer would have been willing to pay d. the total utility of a good is greater than its marginal utility e. many consumers want to buy a good and the price goes up
An insurance plan that carries a low annual premium, but also a low annual maximum amount that insurance will cover is called a
A. PPO. B. fee-for-service provider. C. HMO. D. mini-med.
Which kind of lag is important for monetary policy? Which kind of lag is important for fiscal policy?