With mild demand-pull inflation, the economy's output level would tend to be:
A. Pulled up by the increase in total spending
B. Pulled down by the decrease in total spending
C. Pulled up by the rising unemployment
D. Pulled down by the rising unemployment
A. Pulled up by the increase in total spending
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Which of the following is inconsistent with Robert Nozick's view of fairness as expressed in his book Anarchy, State, and Utopia?
A) Everything that is valuable must be owned by individuals and that the state must ensure that theft is prevented. B) The only legitimate way a person can acquire property is to buy it. C) The requirement that all people should have equal outcomes. D) None of the above answers is correct because all the answers express thoughts consistent with Nozick's view.
The Federal Reserve Bank of New York
A) executes open market operations. B) sets reserve requirements. C) establishes the prime rate. D) establishes the three-month Treasury bill rate.
Monetarism resembles Keynesian thinking in that they both
a. emphasize supply and ignore demand. b. integrate supply-side analysis into their models. c. emphasize demand side effects. d. emphasize the importance of fiscal policy.
If the Fed sells euros valued at $100 million to commercial banks, will this change the size of the Fed's liabilities and assets? Explain.
What will be an ideal response?