The rules-based monetary policy that some nonactivists have proposed to maintain price stability reads this way:
A) The annual growth rate in the money supply will equal the average annual growth rate in Real GDP minus the growth rate in velocity.
B) The annual growth rate in the money supply will equal the average annual growth rate in Real GDP plus the growth rate in velocity.
C) The annual growth rate in the money supply will equal the average annual growth rate in Real GDP divided by the growth rate in velocity.
D) The annual growth rate in the money supply will equal the average annual growth rate in Real GDP times the growth rate in velocity.
A
You might also like to view...
The slope of the IS curve will be steeper the __________ is the sensitivity of investment to a unit change in the interest rate and the __________ is marginal propensity to save
A) greater; larger B) greater; smaller C) less; larger D) less; smaller
A price index:
A. measures how much the cost of a market basket has risen or fallen relative to the cost in a base time period. B. summarizes the changes in the cost of living for only rural consumers. C. allows us to see clearly the changes in the cost of a market basket daily. D. is generally only used with consumer goods and services
A contract between a bee keeper and an orchard farmer usually break because of the high cost of writing the contract
Indicate whether the statement is true or false
Assume a competitive price-searcher firm is earning an economic profit. The marginal revenue from selling an additional unit is $30 and the marginal cost of producing that additional unit is $23 . The firm should
a. change neither its price nor its output level b. reduce its price and increase its output level c. increase its price and reduce its output level d. reduce both its price and its output level e. increase both its price and its output level