Recall the Application about the effectiveness of committees in making decisions about monetary policy to answer the following question(s). If the monthly unemployment rate increase mentioned in the Application wound up being a permanent and not temporary change, the best economic decision by the committee would most likely be to:
A. increase the money supply to stimulate the economy.
B. decrease the money supply to stimulate the economy.
C. decrease the money supply to slow the economy down.
D. not change monetary policy.
Answer: A
You might also like to view...
Explain why purchasing power parity measures of income levels tend to show a smaller difference between poor and rich countries
What will be an ideal response?
A decrease in price causes:
A. a price effect, which is an increase in revenue that results from receiving a lower price for each unit sold. B. a decrease in quantity demanded. C. a quantity effect, which is an increase in revenue that results from selling fewer units of the good. D. both a price effect and quantity effect.
________ is the human resource that organizes labor, land, and capital
A) Human capital B) Human skill C) A gift of nature D) Entrepreneurship E) Profit
Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the accompanying table.Number of Mugs Per DayTotal Cost Per Day0$101$142$193$254$325$406$49 Chris's fixed cost is ________ per day.
A. $10 B. $39 C. $0 D. $49