If monetary policy can influence ________ prices and conditions in ________ markets, then it can affect spending through channels other than the traditional interest-rate channel
A) asset; labor
B) asset; credit
C) commodity; labor
D) commodity; credit
B
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A legal ceiling set below the market-clearing interest rate would tend to
A) create a surplus of loans. B) create a shortage of loans. C) increase the demand for loans. D) decrease the supply of loans. E) do none of the above.
Which of the following is not correct? Using data from 2014,
a. immigrants (both legal and illegal) make up about 40 percent of the U.S. population. b. immigration lowers the earnings of native-born workers in the United States by about 1 to 3 percent. c. illegal immigrants make up about 5 percent of the U.S. workforce. d. today the largest percentage of immigrants come from Latin America and Asia, whereas in the 1950s and 1960s the largest percentage came from Europe.
Two key assumptions of new Keynesian theory include:
A) (1 ) people hold rational expectations, and (2 ) wages and prices are not completely flexible in the short run. B) (1 ) people hold adaptive expectations, and (2 ) wages and prices are inflexible. C) (1 ) people hold rational expectations, and (2 ) wages and prices are flexible. D) (1 ) people hold neither adaptive nor rational expectations and (2 ) prices are inflexible. E) none of the above
When movie ticket prices increase, families tend to spend less time watching movies and more time at home watching videos instead. This best reflects:
A) diminishing marginal utility B) the income effect C) the rationing function of markets D) the substitution effect.