According to the interest-rate-based perspective on the monetary policy transmission mechanism
A) changes in the money supply have little influence on macroeconomic variables.
B) key channels of monetary policy indirectly ultimately relate money supply changes to total planned spending through indirect effects on planned investment.
C) inflation is always caused by excessive monetary growth and changes in the money supply offset aggregate demand only directly.
D) monetary policy leads to increases in the price level but will have no effect on the rate of output.
B
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Under a fixed exchange rate regime, a country that depletes its international reserves in an attempt to keep its currency from ________ will be forced to ________ its currency
A) depreciating; revalue B) depreciating; devalue C) appreciating; revalue D) appreciating; devalue
A price discriminating monopolist will
A) charge a lower price to those consumers who have more elastic demand. B) charge a higher price to those consumers who have more inelastic demand. C) charge more to those consumers who have more substitute goods. D) charge the same price to all consumers.
According to neuroeconomists, the limbic portion of the brain called the amygdala is more primitive and deals with emotion
a. True b. False Indicate whether the statement is true or false
According to Keynesians, an increase in the money supply will have its least impact on GDP and the greatest impact on the price level when the aggregate demand curve intersects
a. the horizontal portion of the aggregate supply curve b. the vertical portion of the aggregate supply curve c. the upward sloping portion of the aggregate supply curve d. either the horizontal or upward sloping portion of the aggregate supply curve e. either the horizontal or upward sloping portion of the aggregate supply curve