The short-run impact of an unanticipated shift to a more restrictive monetary policy is most likely to be a reduction in
a. prices, while real output is unaffected.
b. the rate of unemployment.
c. real output.
d. the size of the budget deficit.
C
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An example of Friedman's k-percent rule is
A) "do not change the growth rate of the quantity of money." B) "every time GDP decreases, decrease the growth rate of the quantity of money." C) "set the growth rate of the quantity money equal to the unemployment rate." D) "every time GDP decreases, increase the growth rate of the quantity of money." E) "use all information available to determine the growth rate of the quantity of money each time GDP changes."
Which of the following is necessary for a market to be deemed "perfectly competitive"?
A) All firms are price searchers. B) All participants enjoy full and complete information. C) Sellers produce of different quality, durability, and desirability. D) All of the above are necessary. E) None of the above are necessary.
A bank has total assets of $2,000,000 and capital of $150,000. The bank's leverage ratio is
A) 20%. B) 15%. C) 7.5%. D) None of the above.
A major cause of volatility in the value of the U.S. dollar is ________
A) foreign exchange interventions by the U.S. Treasury B) change in U.S. net exports C) change in the expected value of the dollar D) disagreement among policy makers