In the long run an increase in the money supply growth rate affects
a. the inflation rate and the natural rate of unemployment.
b. the inflation rate, but not the natural rate of unemployment.
c. neither the inflation rate nor the natural rate of unemployment.
d. the natural rate of unemployment, but not the inflation rate.
b
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The Eyes Wide Open Company is considering producing binoculars that can be used to directly view the sun during a solar eclipse, but it knows that some customers could potentially go blind when using the product. The Eyes Wide Open Company
A) should definitely not produce these binoculars. B) has no way to include the value of the potential damage to eyesight in its cost-benefit analysis. C) has little choice but to include the value of the potential damage to eyesight in its cost-benefit analysis. D) must redesign the binoculars so there is absolutely no possibility of damaged eyesight to customers.
Which of the following statements concerning the long-run average cost (LRAC) curve is correct?
A) The LRAC curve represents the least-cost input combination of inputs for producing each level of output. B) The LRAC curve is derived from a series of short-run marginal cost curves. C) The short-run cost curve at the minimum point of the LRAC curve represents the least-cost plant size for all levels of output. D) As output increases, the amount of capital employed by the firm is held constant along the LRAC curve.
For long-term stopgap financing of large projects, city governments can issue
A) tax-anticipation notes. B) bond-anticipation notes. C) general obligation bonds. D) revenue bonds.
The decline of the greenback against gold made imports more expensive
Indicate whether the statement is true or false