Which of the following would tend to shorten recessions associated with anti-inflation policies by central banks?
a. People adjust their expectations of inflation rapidly.
b. People believe policy announcements made by central bank officials.
c. The short-run Phillips shifts rapidly.
d. All of the above are correct.
d
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All of the following are reasons that health care costs have risen so much in the past few decades EXCEPT
A) the aging population. B) higher imports. C) new technologies. D) third party payments.
The creation of savings plans such as savings deposits and money market mutual accounts that allow easy transfer of funds between interest-earning assets and checkable deposits tends to
A) lower the cost of holding money. B) reduce the demand for money. C) increase the demand for money. D) increase the risk of holding money.
Refer to the graph shown. Expectations of inflation at point B are:
A. 1 percent. B. 2 percent. C. 3 percent. D. unknown.
Inflation can be defined as
A. a decrease in the purchasing power of money. B. no change in the purchasing power of money. C. an increase in real income. D. an increase in the purchasing power of money.