The saying "Money is a veil.". means that
a. while nominal variables are the first thing we may observe about an economy, what's important are the real variables and the forces that determine them.
b. money is the principal medium of exchange in most economies.
c. the primary determinant of short-run economic fluctuations is not real variables, but rather changes in the money supply.
d. in the long run money is of no importance to the determination of either real or nominal variables.
a
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The members of the Federal Reserve's Board of Governors
a. are elected to office by the public every fourteen years. b. are nominated by the U.S. Senate banking committee and confirmed by the U.S. house of representatives. c. are elected by bankers in each Federal Reserve Region. d. are appointed by the president of the U.S. and confirmed by the U.S. Senate.
The exchange rate that equates the quantities of currency supplied and demanded in the foreign exchange market is called the ________ exchange rate.
A. target value of the B. market equilibrium value of the C. real value of the D. fixed value of the
If there is no external cost, then marginal social cost
A) increases as output increases. B) decreases as output increases. C) is constant regardless of the level of output. D) is unrelated to output levels. E) first increases and then decreases as output increases.
In the early 1980s the government's primary method of combating inflation was
A) price and wage controls. B) undoing the "self-inflicted" wounds. C) restrictive monetary policy. D) indexing bonds to protect savers.