According to the rational expectations school, a correctly anticipated expansionary monetary policy will:
a. increase prices and real output
b. increase real output only in the short run.
c. have no effect on prices or real output.
d. decrease prices and real output.
e. lead only to a higher price level.
e
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A) Sam pays $600 for 30 days of guitar classes. He attends an hour-long class every day. If, instead of attending class, he works at a part-time job, he would be paid $5 an hour. Or, he could work at a fast-food outlet and earn $9 per hour
Once he has already paid a nonrefundable fee of $600 to enroll in the class, what is his opportunity cost of attending each hour of class? b) Suppose workers decide to work more and consume less leisure when their hourly wage rate increases. What could explain this behavior?
In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice has ________ advantage in producing ________
A) an absolute; shoes B) a comparative; shoes C) an absolute; bookshelves D) a comparative; bookshelves
Consider a BMW automobile plant. If the price of BMWs increase by 10 percent and the money wage rate and other costs ________, there will be ________
A) increase by 10 percent; an increase in BMWs profits B) do not change; an increase in BMW's production and profit C) increase by 10 percent; an increase in BMWs production D) do not change; no change in production
A future payment's present value is
A) the value in today's dollars of funds to be paid or received in the future. B) the value in today's dollars of funds to be paid or received today. C) the value in a future date's dollars of funds to be paid or received today. D) the value in a future date's dollars of funds to be paid or received in the future.