If velocity is constant then targeting the money supply and nominal GDP is
A) effectively an interest rate target.
B) effectively a real GDP target.
C) effectively the same thing.
D) inherently inconsistent.
C
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The Federal Reserve econometric model predicts that a 2 percent increase in the money supply will increase real GDP after one year by
A) 1 percent. B) 2.5 percent. C) 2 percent. D) 10 percent.
The Producer Price Index (PPI) is based on prices paid for supplies and inputs by producers of goods and services. The PPI in general has increased over time representing that the cost of living has increased over time.
Select whether the statement is true or false. A. True B. False
What three types of timing problems might policy makers experience when conducting discretionary fiscal policy?
Which of the following events could account for the situation shown?
a. an increase in natural resources
b. a change in the expected price level
c. an increase in government regulations
d. a temporary decrease in an input price