Monetary policy can affect real variables in the short run if monetary policy:
a. surprises households.
b. is unpredictable.
c. is random.
d. all of the above.
Answer: d. all of the above.
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If whenever one variable increases, another variable also increases, then these two variables are ________ related
A) inversely B) positively C) cross-sectionally D) trend-line E) negatively
The following are the equations for the supply and demand curves in the market for weezils: Demand: Qd= 20?2P Supply: Qs= 5 + 3P where Qdis the quantity demanded, Qsis the quantity supplied, and P is the price per weezil in dollars. Refer to Exhibit 4-1. If consumers decide that they want 20 percent fewer weezils at every price, the equation for the new demand curve for weezils will be
A. Qd= 20?1.6P. B. Qd= 0.2(20?2P). C. Qd= 0.8(20?2P). D. Qd= 80(20?2P).
High-powered money minus currency in circulation equals
A) reserves. B) the borrowed base. C) the nonborrowed base. D) discount loans.
Over the last century, U.S. labor productivity has: a. fallen
b. been constant, on average. c. grown at about 2 percent per year. d. grown at about 8 percent per year. e. grown at about 15 percent per year.