Which economic perspective would be most closely associated with the view that discretionary monetary policy is an effective force for stabilizing the economy?
A. Monetarism
B. Mainstream economics
C. Rational expectations
D. New classical economics
B. Mainstream economics
You might also like to view...
An inferior good is a good whose income elasticity of demand is less than 0
Indicate whether the statement is true or false
Refer to Figure 2-11. What is the opportunity cost of producing 1 bolt of cotton in Indonesia?
A) 3/8 of a pound of cashews B) 5/8 of a pound of cashews C) 2 2/3 pounds of cashews D) 120 pounds of cashews
Indicate whether each of the following situations would shift the supply curve to the left, to the right, or not at all
a. An increase in the price of an input b. An increase in productivity c. An increase in the price of a substitute in production d. A decrease in the expected future price of a product e. A decrease in the current price of the product
If demand is elastic and the price of a product decreases by 10 percent, then
A) the change in quantity demanded is less than 10 percent. B) the change in quantity demanded is equal to 10 percent. C) the change in quantity demanded is greater than 10 percent. D) the decrease in quantity demanded is greater than 0 percent.