The observation that the money supply is procyclical and leading the level of aggregate economic theory is most closely associated with
A) Lucas and Friedman.
B) Friedman and Schwartz.
C) Kydland and Prescott.
D) David Runkle.
B
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What is the present value of $960 in one year if the current rate of interest is 6 percent?
A) $676.76 B) $905.66 C) $1,017.60 D) $1,449.46
If your nominal wage rises more slowly than the price level, we can say your real wage has ________ and the purchasing power of a dollar has ________
A) risen; risen B) fallen; risen C) fallen; fallen D) risen; fallen
Open market sales ________ reserves and the monetary base thereby ________ the money supply
A) raise; lowering B) raise; raising C) lower; lowering D) lower; raising
The structural deficit:
A. does not change when actual income changes; it but changes only when potential income changes. B. falls as the economy expands and rises when it contracts. C. rises as the economy expands and falls when it contracts. D. changes as actual income changes regardless of potential income.