Choose the letter of the diagram in Figure 16.1 that monetarists would use to illustrate the effect of an increase in the quantity of money on the economy.
A. a.
B. b.
C. c.
D. d.
Answer: C
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A checkable deposit that pays no interest is known as a
A) demand deposit. B) certificate of deposit. C) NOW account. D) time deposit.
What is the difference between the federal budget deficit and the national debt?
a. The budget deficit is the amount by which expenditures exceed revenues in a particular year, while the national debt is the cumulative effect of all past budget deficits and surpluses. b. The budget deficit is the cumulative effect of all prior national debts. c. The national debt includes all outstanding bonds, while the budget deficit excludes bonds held by government agencies. d. This is a trick question because there is no difference between the budget deficit and the national debt.
A market situation where a small number of sellers compose the entire industry is called: a. monopolistic competition. b. monopoly
c. oligopoly. d. perfect competition.
Macroeconomics is the study of
a. how wages are determined in a specific labor market b. how to use the fewest natural resources to produce public goods c. what is happening in the economy as a whole d. how consumers and producers interact in individual markets e. the price and the quantity exchanged in a market