A good reason for policy makers to pursue a goal of stabilizing economic activity is that ________
A) high inflation is always accompanied by high variability of inflation
B) high unemployment causes human misery and lost output
C) in a stable economy, there is little or no structural inflation
D) all of the above
E) none of the above
B
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Goldsmiths who issued receipts for the customer deposits of gold or silver coins were probably the originators of
A) money. B) paper money. C) seignorage. D) Federal Reserve notes.
All of the following are roles of a exchange EXCEPT
A) instituting margin requirements on futures contracts. B) marking to market at the end of each day. C) eliminate the need for buyers and sellers of futures contracts to be concerned about the creditworthiness of each other. D) reducing the default risk involving forward contracts.
William Julius Wilson ascribes "underclass" behavior to a distinct culture of poverty
Indicate whether the statement is true or false