Which of the following statements is false?
A) Economists who advocate discretionary monetary policy argue that it is more likely to achieve the desired economic results because the monetary authority has the flexibility to shape the best monetary policy to the existing circumstances.
B) Here is an example of zero crowding out: The government spends $100 more and the private sector doesn't spend any less.
C) Here is an example of complete crowding out: The government spends $100 more and the private sector spends $100 less.
D) Not all economists believe that rule-based monetary policy is preferable to discretionary monetary policy.
E) none of the above
E
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Consider a two-input production function, one of which is increasing while the other is fixed. At the point of diminishing returns, output will
A) increase at an increasing rate. B) decrease at a decreasing rate. C) decrease at an increasing rate. D) increase at a decreasing rate.
Suppose the price elasticity of demand for a product is 1 . If a supplier wants to increase revenue, what change should it make to price, if any?
Microeconomics is concerned with studying which of the following?
A. the effects of monetary policy B. the determinants of national unemployment C. the study of a nation's workforce D. none of these
Karl Marx and Friedrich Engels said
A. "The theory of the Communists may be summed up in the single sentence: Abolition of private property." B. "The vice of capitalism is that it stands for the unequal sharing of blessings; whereas the virtue of socialism is that it stands for the equal sharing of misery." C. "It is not the employer who pays wages-he only handles the money. It is the product that pays wages." D. "Capital is past savings accumulated for future production."