According to the theory of liquidity preference, the money supply
a. and money demand are positively related to the interest rate.
b. and money demand are negatively related to the interest rate.
c. is negatively related to the interest rate while money demand is positively related to the interest rate.
d. is independent of the interest rate, while money demand is negatively related to the interest rate.
Ans: d. is independent of the interest rate, while money demand is negatively related to the interest rate.
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Spending on programs that Congress authorizes ________ is known as discretionary spending
A) after approval from the Federal Reserve B) on an off-budget emergency basis C) by prior law D) on an annual basis
In the above figure, a trough is at point ________ and a peak is at point ________
A) a; b B) b; c C) b; a D) d; c
According to the Monetarists, "Policy activism" is difficult if not impossible to perform successfully because
A) the timing of policy impacts on nominal GDP are known. B) the magnitude, size of impacts are known. C) the timing and magnitude of the impact of AD disturbances are known, forecasted with precision. D) Monetarists believe all of the above are correct.
New England's exports went primarily to
a. the United Kingdom. b. continental Europe. c. the West Indies. d. Africa.