If the axes in the model for the monetary policy reaction curve are the real interest rate (vertical axis) and the rate of inflation (horizontal axis), then the monetary policy reaction curve would:
A. have a zero slope.
B. have a negative slope.
C. have a positive slope.
D. be vertical.
Answer: C
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What will be an ideal response?
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A) implicit costs. B) fixed costs. C) explicit costs plus its implicit costs. D) explicit costs.
The major determinant of an individual's income is
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a. Discount rate are inversely related b. Prime interest rate are positively related c. Velocity of money are positively related d. Reserve ratio are inversely related