The proposal to keep the quantity of money growing at a slow constant rate is an example of
A) a constant federal funds rate rule.
B) a nominal GDP targeting rule.
C) an inflation rate targeting rule.
D) discretionary policy.
E) a money targeting rule.
E
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How does the national debt as a percentage of GDP in the United States compared to the United Kingdom?
a. U.S. national debt ratio is smaller. b. U.S. national debt ratio is slightly larger. c. U.S. national debt ratio is substantially larger. d. U.S. national debt ratio is substantially smaller.
When demand is perfectly inelastic, the demand curve will be
a. negatively sloped, because buyers decrease their purchases when the price rises. b. vertical, because buyers purchase the same amount as before whenever the price rises or falls. c. positively sloped, because buyers increase their purchases when price rises. d. positively sloped, because buyers increase their total expenditures when price rises.
Once the supply curve for a product or service is drawn, it
a. remains stable over time. b. can shift either rightward or leftward. c. is possible to move along the curve, but the curve will not shift. d. tends to become steeper over time.
Costs that are forever lost after they have been paid are:
A. fixed costs. B. production costs. C. sunk costs. D. variable costs.