Because of the lag of the effects of changes in monetary policy and the failure of forecasters to anticipate supply-side shocks as well as changes in money demand or velocity, activist policy changes have tended at times during the mid-1970s to
A) accelerate inflation during expansions.
B) increase unemployment during recessions.
C) accelerate inflation and increased unemployment.
D) dampen inflation and decrease unemployment.
C
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If a bank has total reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of demand deposits the bank can have if excess reserves are zero is
a. $100,000 b. $80,000 c. $300,000 d. $20,000 e. $200,000
Refer to Figure 6.3. Suppose the price of pizza is $8.50. Then the consumer will purchase _____ pizzas and the net benefit is ______.
A. 5; $9.50
B. 4; $8.00
C. 5; $3.50
D. 4; $9.50
Suppose a perfectly competitive firm is producing 37 units output, and the marginal cost of the 37th unit is $3. If the firm can sell each unit of output for $5 and the firm's revenue is sufficient to cover its variable cost, the firm should:
A. decrease production. B. lower its price. C. raise its price. D. increase production.
By the end of the colonial period in U.S. history, slaves in the colonies
(a) owned land communally. (b) had status in courts. (c) helped meet a labor need. (d) were born in Europe and shipped to the colonies.