Monetary policy can be effective only if
A) the money supply reacts to changes in the interest rate.
B) planned investment reacts to changes in the interest rate.
C) money demand reacts to changes in the interest rate.
D) government spending reacts to changes in the interest rate.
Ans: B) planned investment reacts to changes in the interest rate.
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An increase in the level of real GDP in the economy leads to
A) a leftward shift in the demand for money curve. B) a rightward shift in the demand for money curve. C) a leftward movement along the demand for money curve. D) a rightward movement along the demand for money curve.
Relative to productivity growth in the United States, which of the following countries experienced the largest decline in productivity growth from 1990 to 2014?
A) Canada B) the United Kingdom C) Japan D) Germany
A legitimate objection to the government issuance of "indexed" bonds is that they
A) are more of a drain on the Treasury than conventional bonds. B) can encourage inflation and weaken policy resistance to it. C) discourage saving when inflation is reduced. D) further discourage the use of money and thus increase shoe-leather costs.
Efficient markets could not result in a real-world outcome such as that evidenced by the prevalence of international poverty in LDCs
Indicate whether the statement is true or false