In the long run, monetary policy can
a. change the form of inflation
b. change the type of unemployment
c. change the level of unemployment
d. stop the flow of currency abroad
e. change the rate of inflation
E
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A federal budget deficit
a. occurs when government expenditures exceed tax revenues. b. occurs when monetary policy works in the opposite direction of fiscal policy. c. occurs when tax revenues exceed government expenditures. d. occurs when transfer payments exceed tax revenues. e. will always result when Congress and the president cannot agree on expenditures.
Which of the following relationships is likely to exhibit negative correlation?
A) The relationship between inflation in the U.S. and traffic congestion in China B) The relationship between amount saved with a bank and the interest earned C) The relationship between the amount of precipitation in a year and the number of umbrellas sold D) The relationship between level of professional training and unemployment
Which type of U.S. government security is a kind of zero-coupon security?
A) Federal funds note B) U.S. Treasury note C) U.S. Treasury bill D) U.S. Treasury bond
Initially a bank has a required reserve ratio of 10 percent and no excess reserves. If $1,000 is deposited into the bank, then, ceteris paribus,
A. Required reserves will increase by $1,000. B. Total reserves will increase by $900. C. This bank can increase its loans by $1,000. D. This bank can increase its loans by $900.