According to the quantity theory of money, if the money supply grows at 6%, real GDP grows at 2%, and the velocity of money is constant, then the inflation rate will be
A) 8%.
B) 6%.
C) 4%.
D) 2%.
Answer: C
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The Depository Institutions Deregulation and Monetary Control Act of 1980
A) separated investment banks and commercial banks. B) restricted the use of ATS accounts. C) imposed restrictive usury ceilings on large agricultural loans. D) increased deposit insurance from $40,000 to $100,000.
In the long run, wages and prices are considered to be: a. fixed
b. sticky. c. flexible. d. unstable.
Since 1970, the poverty rate has largely fluctuated between:
A. 5 and 10 percent. B. 10 and 15 percent. C. 15 and 25 percent. D. 0 and 5 percent.
The underlying reason of the problem of pollution is
A. a poorly run Environmental Protection Agency. B. greed on the part of producers. C. greed on the part of consumers. D. poorly defined property rights that are expensive to enforce.