The distinction between real and nominal interest rates:
A. makes it easier to assess the impact of monetary policy.
B. does not affect the assessment of monetary policy since real interest rates are observable.
C. makes it harder to assess the impact of monetary policy.
D. does not affect the assessment of monetary policy since nominal interest rates are observable.
Answer: C
You might also like to view...
In the monetary small open-economy model with a flexible exchange rate, an increase in the domestic price level has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.
Other things constant, the more profitable a corporation is,
a. the lower the value of its shares on the stock market and the lower the interest rate that would have to be paid on new bond issues b. the higher the value of its shares on the stock market and the higher the interest rate it would have to pay on new bond issues c. the higher the value of its shares on the stock market and the lower the interest rate that would have to be paid on new bond issues d. the lower the value of its shares on the stock market and the higher the interest rate that would have to be paid on new bond issues e. the lower the interest rate that would have to be paid on new bond issues; the value of its shares on the stock market does not vary
The percentage change in quantity demanded that results from a 1 percent change in price is known as the:
A. cross-price elasticity of demand. B. income elasticity of demand. C. price elasticity of supply. D. price elasticity of demand.
Suppose the government spends $10 billion subsidizing firms producing electricity with wind turbines because these firms are high cost producers. Will the subsidies lead to economic growth and higher income levels?
What will be an ideal response?