In comparing monetarism and rational expectations theory we find that
A. both favor policy rules for the same reasons.
B. both favor policy rules, but for different reasons.
C. both favor discretionary policies.
D. the former favors discretionary policy, while the latter favors policy rules.
E. the former favors policy rules, while the latter favors discretionary policy.
B. both favor policy rules, but for different reasons.
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The Fed's policy actions of reacting to higher inflation by raising the real interest rate during 2004-2006 were
A) upward movements along the monetary policy curve. B) downward movement along the monetary policy curve. C) upward shifts of the monetary policy curve. D) downward shifts of the monetary policy curve.
For the study of economic growth, it is most helpful to examine movements in ________; for the study of business cycles, it is most helpful to examine movements in ________
A) trend GNP; trend GNP B) trend GNP; deviations from trend in GNP C) deviations from trend in GNP; trend GNP D) deviations from trend in GNP; deviations from trend in GNP
One can determine the consumers' surplus if the _______________ are known
A) tax paid B) maximum buying price C) price paid D) maximum buying price and price paid E) maximum buying price and tax paid
Which of the following BEST describes the shortrun effects of FDI inflows to Singapore during the latter part of the twentieth century?
a. The effects contradicted the specificfactors model because wages fell, while the rental on capital rose. b. The effects confirmed the specificfactors model because wages rose, while the rental on capital fell. c. FDI did not have any measurable effects on either wages or the rental on capital in Singapore. d. FDI confounded economists because both the rental on capital rose and wages rose in Singapore.