When we assume that the supply of money is a variable that the central bank controls, we
a. must then assume as well that the demand for money is not influenced by the value of money.
b. must then assume as well that the price level is unrelated to the value of money.
c. are ignoring the fact that, in the real world, households are also suppliers of money.
d. are ignoring the complications introduced by the role of the banking system.
d
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Which if the following is a key difference between profit-oriented institutions (such as small businesses) and non-profit institutions (such as governments, hospitals, or schools)? Profit-oriented institutions
A) are usually competitive rather than cooperative. B) have a recognized residual claimant. C) pursue private interests rather than the public interest. D) rely on monetary incentives to secure the cooperation required for their functioning. E) work through market processes.
The above figure shows Jane's budget line and two of her indifference curves. How many lobster dinners will Jane purchase each month?
A) 4 lobster dinners B) 5 lobster dinners C) 8 lobster dinners D) 10 lobster dinners
When calculating the TSLS standard errors
A) you do not have to worry about heteroskedasticity, since it was eliminated in the first stage B) you can use the standard errors reported by OLS estimation of the second stage regression. C) the critical values from the standard normal table should be adjusted for the proper degrees of freedom. D) you should use heteroskedasticity-robust standard errors.
When the prevailing market wage is above equilibrium, we say:
A. there is no unemployment. B. there is a surplus of labor. C. the quantity of labor demanded is more than the quantity supplied. D. All of these are true.