The New Keynesian transmission mechanism for monetary policy is characterized by
A) helicopter drops of money.
B) money having an impact on the real interest rate.
C) banks using money injections for business loans.
D) the government buying goods with fresh money.
B
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Inflation has no effect on an economy's well-being if
A) it is universally and accurately anticipated. B) relative prices are unaffected. C) the nominal rate of interest for both savers and borrowers rises by an amount just equal to the rate of inflation. D) all of these
Accounting profits are
A) total revenue minus explicit costs. B) total revenue minus implicit costs. C) total revenue minus explicit and implicit costs. D) total revenue minus normal costs.
A signal is
a. a proxy measure of job conditions b. a proxy measure of a job applicant's skills c. used by employers to indicate that a job interview is over d. an indication of an excess supply of labor e. an indication of an excess supply of qualified labor
The Coffee Nook, a small cafe near campus, sells cappuccinos for $2.50 and Russian tea cakes for $1.00 each. What is the opportunity cost of buying a cappuccino?
A) 2 1/2 Russian tea cakes B) 2/5 of a Russian tea cake C) $2.50 D) $1.00