In order to use inflation targeting, a central bank must:
a. be independent of fiscal policy.
b. be dependent on fiscal policy.
c. focus on money supply.
d. focus on unemployment.
e. focus on stable exchange rates.
a
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If velocity is constant and equal to 2, a $10 billion shift of the LM curve to the left will be produced by a __________ in the money supply
A) $5 billion increase B) $5 billion decrease C) $20 billion increase D) $20 billion decrease
Smokers and loud talkers who ignore the external effects of their actions are being rational in the economic sense
a. True b. False
The situation in which actual output exceeds potential output
a. is impossible because all resources are employed to produce potential output b. is possible only in times of high unemployment c. is possible only if the unemployment rate is negative d. is possible only in the long run e. creates pressure for inflation
According to the textbook, in the book version of The Wonderful Wizard of Oz, Dorothy's slippers are
A) gold. B) silver. C) ruby. D) paper.