Fully anticipated monetary policy actions cannot alter either the rate of unemployment or the level of real GDP. This statement is
A) the nonaccelerating inflation rate of unemployment theory.
B) discretionary policy making.
C) the policy irrelevance proposition.
D) the Phillips curve.
C
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If the quantity of money demanded is greater than the quantity supplied, then the value of money rises
a. True b. False Indicate whether the statement is true or false
Refer to Figure 11.3. Assume aggregate demand is represented by AD3 and full-employment output is $5.6 trillion. The economy confronts an inflationary GDP gap of
A. $600 billion. B. $400 billion. C. $800 billion. D. $200 billion.
Economies of scale associated with financial intermediaries means:
A. the cost per transaction falls as a larger volume of similar transactions are handled. B. the cost per transaction decreases regardless of the number of transactions. C. the cost per transaction increases as more transactions are handled. D. the total cost of handling transactions falls as more transactions of different kinds are handled.
The largest source of tax receipts for the government is
A. personal taxes. B. contributions for social insurance. C. taxes on production and imports. D. corporate taxes.