Answer the following statements true (T) or false (F)
1) In the insider-outsider theory, insiders are agents and outsiders are principals.
2) Nearly all modern economists support the idea of a monetary rule.
3) Monetarists say that fiscal policy, such as a tax cut, will only affect the level of real GDP if it
entails a change in the supply of money.
4) Efficiency wage theory says that an above-market wage can reduce labor costs per unit of
output by eliciting greater work effort, lowering supervision costs, and reducing job turnover.
1) F
2) F
3) F
4) T
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Use the following table to answer the next question.ItemBillions of DollarsCheckable deposits$597Small time deposits818Currency639Money-market mutual funds held by businesses1,045Savings deposits, including money-market deposit accounts2,866Money-market mutual funds held by individuals979The size of the M1 money supply is
A. $979 billion. B. $1,415 billion. C. $,1618 billion. D. $1,236 billion.
The major contributor to the long-run improvement of a country's standard of living is
A) low inflation. B) growth in government. C) population growth. D) technological progress.
Conclusions about the misallocation of resources under conditions of monopoly depend, in part, on the crucial assumption that
A) monopolies are interested in economic profits and competitive firms are not. B) the monopolization of a perfectly competitive industry does not change the cost structure of the industry. C) the economies of scale exist only in perfectly competitive industries. D) the marginal cost curve of a monopolist is different from that of a perfectly competitive firm.
When the Fed wants to decrease US interest rates it will buy US treasury bonds
a. true b. false