One requirement for an effective nominal anchor is ________
A) price stability
B) credibility
C) fixed exchange rates
D) rational expectations
B
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If firms and workers could predict the future price level exactly, the short-run aggregate supply curve would be
A) downward sloping. B) horizontal. C) upward sloping. D) vertical.
According to the adaptive expectations theory, people form their expectations of the future on the basis of recent experiences
a. True b. False Indicate whether the statement is true or false
The velocity of money is the __________ number of times a dollar is spent to buy final goods and services in a year
A) total B) average C) marginal D) statistical
In general, a dry cleaner in a small town is ______________ likely to be unethical in his business practices than a dry cleaner in a large city. This is because the larger a percentage of the population one person is, the _____________likely that person will have to further engage with people he encounters
A) more; less B) less; less C) more; more D) less; more