In general, the quantity of savings supplied to be used for lending increases with the rate of interest
a. True
b. False
Indicate whether the statement is true or false
True
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An increase in the price level shifts the planned expenditures curve upward
Indicate whether the statement is true or false
Assume that during the last several years, the annual rate of inflation was 4 percent and the annual growth rate of the money supply was 5 percent. During the last 12 months, however, the monetary authorities have increased the money supply at a 12 percent annual rate. The expected inflation rate for the next period will be
a. higher than 4 percent under the rational expectations hypothesis. b. 4 percent under the adaptive expectations hypothesis. c. higher than 4 percent under both the adaptive and rational expectations hypotheses. d. both a and b.
Any policy change that reduced the natural rate of unemployment would
a. shift the long-run Phillips curve to the left. b. shift the long-run aggregate-supply curve to the right. c. improve the functioning of the labor market. d. All of the above are correct.
Double taxation means that both
a. the profits of corporations and the dividends shareholders receive are taxed, which is not currently the case in the United States. b. the profits of corporations and the dividends shareholders receive are taxed, which is currently the case in the U.S. c. wage income and employee benefits are taxed, which is not currently the case in the United States. d. wage income and employee benefits are taxed, which is currently the case in the United States.