Monetarists maintain that
a. the best way to study the economy is with the expenditure schedule.
b. control over the money supply implies control over real GDP.
c. velocity is not constant, but is fairly predictable.
d. All of the above are correct.
c
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Justin has a part-time job and earns $50 per week. He spends his entire income on two goods: Hamburgers (which cost $2 each) and movie rentals (which cost $3 each). Draw Justin's budget constraint
Suppose that Justin decides to purchase 10 hamburgers and rent 10 movies this week. Is this choice within Justin's opportunity set? Show this choice on your graph.
Using the expectations hypothesis on the term structure of interest rates, explain the relationship between the interest rate on a one-year Treasury bond and the interest rate on a two-year Treasury bond
What will be an ideal response?
The ability to set a price greater than marginal cost guarantees an economic profit for the monopolistic competitor (assuming P > AC)
Indicate whether the statement is true or false
Which of the following graphs or charts must add up to one hundred percent?
a. a labor graph b. a pie chart c. a time-series graph d. a scatter diagram