According to rational expectations theory, which of the following is the best approach to lower the inflation rate?
a. Preannounced stable government policies.
b. Unpredictable government policies.
c. First predictable and then unpredictable government policies.
d. None of these.
a
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Once an equilibrium is achieved, it can persist indefinitely because
A) shocks that shift the demand curve or the supply curve cannot occur. B) shocks to the demand curve are always exactly offset by shocks to the supply curve. C) the government never intervenes in markets at equilibrium. D) in the absence of supply/demand shocks no one applies pressure to change the price.
The number of times per year, on average, that a dollar is used to purchase final goods and services is the
A. Money magnifier. B. Velocity of money. C. Business cycle. D. Multiplier.
Of the types of business organizations in the United States, corporations account for ________ percentage of firms and ________ percentage of profits
A) smallest; neither the largest nor smallest B) neither the largest nor smallest; the largest C) the smallest; the largest D) the largest; the largest
Which of the following would lead to an increase in the supply of Russian rubles?
a. An increase in the dollar price of the ruble b. An increase in Russian GDP c. An increase in the U.S. price level relative to the Russian price level d. A decrease in the dollar-ruble exchange rate e. Expectation that the price of the ruble will rise.