Any value of the money supply chosen by the Federal Reserve implies a specific value for ________.
A. government purchases
B. potential output
C. the budget deficit
D. the nominal interest rate
Answer: D
You might also like to view...
What are the three types of transactions between the residents of different countries?
What will be an ideal response?
Hedging by buying an option
A) limits gains. B) limits losses. C) limits gains and losses. D) has no limit on option premiums.
What criteria do consumers apply when deciding whether or not to consume
a. The consumer would consume only if the price is lower than his highest willingness to pay b. The consumer would only consume if his surplus is greater than zero c. The consumer would only consume if the price is higher than his highest willingness to pay d. Both A&B
If there was only full-reserve banking:
A. the financial system would work better. B. absolutely no lending using deposits would be able to occur. C. banks would make more money lending deposits. D. The money multiplier would be at maximum.