The Friedman Rule is optimal because
A) households would be able to buy more as prices decrease.
B) the central bank has better control of the money supply.
C) money is neutral.
D) households are indifferent between holding bonds and money.
D
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When the Fed increases the money supply, interest rates:
a. rise. b. fall. c. are unaffected. d. rise and then fall. e. fall and then rise.
Robert put $15,000 into an account with a fixed interest rate two years ago and now the account balance is $16,917.66 . What rate of interest did Robert earn?
a. 4.5 percent b. 5.4 percent c. 6.2 percent d. 8.0 percent
Refer to Figure 4-1. If the market price is $1.00, what is the consumer surplus on the fourth burrito?
A) $0 B) $0.50 C) $1.50 D) $2.25
Greenbacks were first issued
(a) by the Federal government to help the economy out of a recession in the 1850s. (b) by the States to pay for the construction of canals. (c) by the Federal government to help pay for the Civil War (1861–1865). (d) by banks during the Free Banking Era.