According to the new classical macroeconomists, each of the following statements is true EXCEPT:
A) Disinflation will be harder to bring about because of the time-inconsistency problem.
B) Policymakers are tempted to deviate from the preannounced policy once the public changes its expectations.
C) Feedback rules are preferred to discretionary rules.
D) Disinflation will be painless if the restrictive policies announced by the government are credible.
C
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Antitrust laws are designed to
A. preserve competition. B. protect the environment. C. protect the public’s trust in the government. D. All of the responses are correct.
If a nation's currency buys fewer units of a foreign currency today than yesterday, we say the value of its currency has:
a. appreciated. b. depreciated. c. stagnated. d. become inverted.
When purchasing a product with a credit card, the benefit of the product will be experienced in the ________, and the cost will be experienced in the ________.
A. present; present B. present; future C. future; present D. future; future
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline