The expected future money supply does not have an effect on:
A. expected future inflation.
B. the current price level.
C. the current nominal money supply.
D. the future price level.
Ans: C. the current nominal money supply.
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Which of the following explains why managers of government agencies have little incentive to achieve operational efficiency?
a. Public-sector managers need not fear bankruptcy when operational efficiency is not achieved. b. Public-sector managers seldom receive personal benefits if they find ways to improve the efficiency of their operations. c. Public-sector agencies typically do not face competition. d. All of the above explain why government agencies have little incentive to be efficient.
Which of the following states had the highest incidence of union membership as a percent of all wage and salary workers in 2012?
a. New York b. Arkansas c. North Carolina d. California
The Taylor rule accurately predicted the changes in the federal funds target during the period
A) when Alan Greenspan was the chairman of the Federal Reserve Board. B) when Paul Volcker was the chairman of the Federal Reserve Board. C) when Arthur Burns was the chairman of the Federal Reserve Board. D) when William McChesney Martin was the chairman of the Federal Reserve Board.
The quantity theory of money asserts that an increase in the quantity of money
A) will decrease the price level by an offsetting amount. B) by n percent will lead to an increase in the price level by n + 1 percent. C) will lead to an equal percentage increase in real GDP. D) will lead to an equal percentage increase in the price level.