Tax cuts affect only aggregate demand not aggregate supply
a. True
b. False
Indicate whether the statement is true or false
False
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Most of the pressure for a monetary growth rule has disappeared because since 1980,
A) the relationship between movements in the money supply and movements in real GDP and the price level have become much weaker. B) the relationship between movements in the money supply and movements in real GDP and the price level have become much stronger. C) the relationship between movements in interest rates and movements in real GDP and the price level have become much weaker. D) the relationship between movements in interest rates and movements in real GDP and the price level have become much stronger.
A bank run involves
A) a failure by a bank to get the maximum return on its investments. B) large numbers of depositors withdrawing their deposits within a short period of time. C) a bank being forced out of business. D) fraud on the part of a bank's managers.
Which of the following is not a developing country classified as a high-income economy because of possessing huge oil reserves?
a. United Arab Emirates b. Chad c. Qatar d. Kuwait e. Bahrain
Which of the following policy actions by the Fed would cause the money supply to decrease?
a. An open-market purchase of government securities. b. A decrease in required reserve ratios. c. An increase in the discount rate. d. A decrease in the discount rate.