According to the quantity theory of money, if both the growth rate of the money supply and the velocity of money are fixed, then a higher inflation rate means
What will be an ideal response?
a lower real growth rate.
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Which of the following shifts the demand for loanable funds curve leftward?
A) a fall in the real interest rate B) a rise in the real interest rate C) a decrease in the taxes paid by the business D) a decrease in the expected profit
Which of the following must be present to reach a private solution to an externality problem?
A) The total number of people, creators of the problem and those affected, must be relatively large to justify negotiating a solution. B) The transactions costs to negotiate a solution must be relatively low. C) The government must approve the solution for it to be a legal solution. D) A majority of the parties affected by the externality must agree to a solution.
Federal government expenditures, as a percentage of GDP
A) rose from 1950 to 1991, fell from 1992 to 2001, and have risen from 2001 to the present. B) rose from 1950 to 1980, fell from 1981 to 2001, and have risen from 2001 to the present. C) have fallen since the early 1950s to the present. D) have risen since the early 1950s to the present. E) rose from 1950 to 2001 and then fell from 2001 to the present.
Between 1970 and 2000, the Fed:
A. never published targets or actual amounts for money growth. B. published targets for money growth and rarely hit them. C. published their targets for money growth and often hit these targets. D. published actual money growth but not targets.