Suppose that monetary neutrality and the Fisher effect both hold and the money supply growth rate has been the same for a long time. Other things the same a higher money supply growth would be associated with
a. both higher inflation and higher nominal interest rates.
b. a higher inflation rate, but not higher nominal interest rates.
c. a higher nominal interest rate, but not higher inflation.
d. neither a higher inflation rate nor a higher nominal interest rate.
a
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Thanks to randomized controlled trials, policymakers and program managers can:
A. more confidently channel resources to approaches that are cost effective. B. more confidently channel resources to approaches that work. C. have at least some evidence that the programs chosen are better than others. D. All of these statements are true.
Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and nine million dollars in excess reserves
Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one B) two C) eight D) ten
The financing of U.S. import transactions, ceteris paribus
A) reduces U.S. interest rates. B) increases the amount of foreign currency held by the Fed. C) increases U.S. GDP. D) decreases the amount of foreign currency held by U.S. banks.
The activity involved in managing a firm is considered by economists to be
a. land activity b. labor activity c. human capital activity d. entrepreneurial activity e. nonproductive activity