The belief that the velocity of money is not constant but highly predictable is associated with the:
a. classical school.
b. Keynesian school.
c. supply-side school.
d. rational expectations school
e. monetarist school.
e
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What makes production-planning a daunting task for central planners?
Using the exact formula, the nominal interest rate equals:
a. Real interest rate + Actual inflation + (Real interest x Actual inflation). b. Real interest – Expected inflation. c. Real interest + Expected inflation + (Real interest x Expected inflation). d. Real interest – Expected inflation – (Real interest x Expected inflation).
The real risk-free interest rate is determined by:
a. Consumer and business demand. b. Supply and demand forces in the real loanable funds market. c. International supply and demand for domestic currency in the foreign exchange market. d. The size of the government debt. e. None of the above.
An emissions standard will work best in which of the following cases?
a. The marginal cost of pollution reduction curve is relatively flat b. The marginal cost of pollution reduction curve is relatively steep c. All firms have similar equipment and technology d. The health effects of a pollutant are relatively unknown e. Firms have very different equipment and technology