The money supply is vertical because
A) prices are indeterminate.
B) prices have no real impact.
C) the money supply is set by policy.
D) prices are counter-cyclical.
C
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If consumers' confidence in the economy rises
A) aggregate demand will shift rightward and the price level will rise. B) aggregate demand will shift leftward and the price level will fall. C) aggregate demand will shift rightward and the price level will fall. D) aggregate demand will shift leftward and the price level will rise.
Firms in a cartel have an incentive to cheat on the cartel agreement because they suspect the other firms are cheating as well.
Answer the following statement true (T) or false (F)
"Opportunity cost" is
A) the monetary cost of one's actions. B) the objective cost of one's actions. C) the regret one feels when making a sacrifice. D) the value one places on the item, project, or plan he has chosen to pursue. E) none of the above.
The popular theory prior to the Great Depression that the economy will automatically adjust to achieve full employment in the long run is:
A. supply-side economics. B. Keynesian economics. C. classical economics. D. mercantilism