An inflation forecast developed in a Monetarist framework is likely to focus on
A) Federal Reserve policy.
B) interest rate movements.
C) household and business spending decisions.
D) the velocity of money.
A
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What does macroeconomic theory predict as the main economic effect of a reduction in the budget deficit?
A. Lower real interest rates B. A drop in the exchange rate C. An increase in net exports D. All of these responses are correct.
Investment spending ____ during a recession, and _____ during an expansion
Fill in the blank(s) with the appropriate word(s).
Meaning well, your grandmother gives you a new wool sweater for your birthday that she knitted herself. You, however, hate wearing wool. What is the utility problem that you face? What can you do to remedy the problem?
Please provide the best answer for the statement.
Shocks to the economy occur:
A. when expectations are unmet. B. whenever the price level changes. C. whenever government implements fiscal or monetary policy. D. because most economic behavior is unpredictable.