According to the rational expectations school, if the Fed announces a policy of rapid growth in the money supply, but then puts the brakes on money expansion without any announcement, which of the following is likely to be the short-run result?
a. An unexpected surge in aggregate demand
b. An unexpected drop in aggregate demand.
c. An anticipated surge in aggregate demand.
d. An anticipated drop in aggregate demand.
e. No change in aggregate demand.
b
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Along with currency not in banks and deposits in checking accounts, what is another component of the M1 measure of money?
A) traveler's checks B) debit cards C) credit cards D) prepaid accounts
What two factors determine labor productivity? Explain which of the two is more important
What will be an ideal response?
Human capital is also known as
A. wages employees receive. B. the cost of collective bargaining. C. the cost of labor. D. education and skill levels.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.