Researchers at the Federal Reserve found that M2 money demand functions performed ________ in the 1980s, with M2 velocity moving ________ with the opportunity cost of holding M2
A) poorly; erratically
B) poorly; closely
C) well; erratically
D) well; closely
D
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If the price of Coca-Cola increases from 40 cents to 50 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the value of the price elasticity of demand for Coca-Cola is:
A. unit elastic. B. elastic. C. inelastic. D. perfectly inelastic. E. perfectly elastic.
Which of the following is NOT an assumption of the classical system?
A) Wages and prices are inflexible. B) Pure competition exists. C) There is no money illusion. D) People are motivated by self interest.
Which creates a larger deadweight loss, perfect competition or a single-price monopoly?
What will be an ideal response?
The TANF program was the result of _____
a. the New Deal b. the Great Society programs of President Johnson c. President Reagan's second term in office d. President Clinton's desire to end welfare as conventionally understood