For interest rates to remain stable during economic expansions, the money supply should:
a. decrease at a faster rate than the demand for money.
b. grow at the same rate as money demand
c. grow at a faster rate than money demand.
d. grow at a slower rate than money demand.
e. decrease at a slower rate than the demand for money.
b
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In the economic way of thinking,
A) buyers compete against other buyers, sellers cooperate with other sellers, and buyers cooperate with sellers. B) buyers cooperate with other buyers, sellers cooperate with other sellers, and buyers compete with sellers. C) buyers compete against other buyers, sellers compete against other sellers, and buyers cooperate with sellers. D) buyers cooperate with other buyers, sellers cooperate with other sellers, and buyers cooperate with sellers.
A criticism of the monetarist autonomous spending variable is that
A) some types of autonomous spending do not affect aggregate demand. B) some types of autonomous spending affect aggregate demand before the spending occurs. Some types of autonomous spending affect aggregate demand when they occur. C) some types of autonomous spending affect aggregate demand only long after they occur. D) Keynesians do not think that autonomous spending affects aggregate demand.
Which of the following transactions would be excluded in the capital account?
A. A Japanese citizen purchases a U.S. Treasury bill. B. A Japanese citizen purchases an office building in Manhattan. C. A U.S. citizen purchases a share of stock from a Japanese company. D. An American purchases a Toyota.
Explain what is meant by economic efficiency. Does efficiency imply that the fastest production processes or the most powerful equipment must always be used? Explain
What will be an ideal response?