The long-run response to a decrease in the money supply growth rate is shown by shifting
a. the short-run and long-run Phillips curves left.
b. the short-run and long-run Phillips curves right.
c. only the short-run Phillips curve left.
d. only the short-run Phillips curve right.
c
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Supply-siders feel that high levels of government spending:
a. assist private sector investing by creating infrastructure. b. have no impact on private sector investment. c. complement private spending. d. cause private sector investment to decline because of crowding out. e. cause private sector spending to decrease because of increases in corporate taxes to finance the government spending.
Since 1980, changes in the nature of both the M1 and M2 money supply have
a. increased their reliability as indicators of monetary policy. b. decreased their reliability as indicators of monetary policy. c. had no effect on their reliability as indicators of monetary policy. d. decreased their reliability as indicators of fiscal policy.
Savings and taxes are considered leakages in the circular flow model.
Answer the following statement true (T) or false (F)
Suppose Mary receives an $8,000 loan from First National Bank. Mary repays $8,480 to First National Bank at the end of one year. Assuming the simple calculation of interest, the interest rate on Mary's loan was:
A. $480 B. 8.00% C. 6.00% D. 5.66%