You and a friend are arguing over the issue of the nonneutrality of money. You believe that money is not neutral, and to prove your point you would cite all of the following except
A) large gold discoveries that increased the money supply preceded an economic boom.
B) a change in monetary institutions preceded a boom or recession.
C) a change in the leadership of the Fed and its policy was followed by noticeable changes in the money supply and a recession or inflation.
D) the fact that every recession was preceded by a drop in the money supply.
D
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Equilibrium real income is more stable in the face of aggregate autonomous expenditure variability under
A) a floating exchange rate. B) a pegged exchange rate. C) a fixed exchange rate. D) perfect capital mobility systems.
Markets allocate resources efficiently when Adam Smith's "invisible hand" is allowed to work freely. Which of the following statements is true?
a. Unrestrained, competitive markets can accomplish optimal resource allocation through the invisible hand - the competitive price system. b. Mandatory controls that lower prices below equilibrium improve economic welfare by making the product cheaper and promote the efficient use of resources. c. The "visible hand" of government planners provides transparency to markets and thus improves outcomes. d. Increased competition from medical travel, domestic or international, does harm to patients who do not have the ability to travel for care. e. Government regulation is essential for market outcomes to maximize consumer welfare.
For any firm, price always equals
A. average revenue. B. marginal revenue. C. marginal cost. D. marginal profit.
Which of the following is an example of a nondurable good?
a. A Sport Utility Vehicle b. A Bag of Cookies c. A Dishwasher d. None of the above are examples of nondurable goods.