According to the Keynesian model, a decline in the expected price level
a. will increase the inflation rate a central bank must generate to achieve a target level of unemployment.
b. will decrease the inflation rate a central bank must generate to achieve a target level of unemployment.
c. will not affect the inflation rate a central bank must generate to achieve a target level of unemployment.
d. will not impact the effectiveness of monetary policy.
B
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According to the equation of exchange, nominal GDP equals
A) the amount of actual money balances divided by the income velocity of money. B) the price level divided by the income velocity of money. C) the amount of actual money balances times the income velocity of money. D) the price level times the income velocity of money.
The opportunity cost of going to a particular college is not the same for everyone
Indicate whether the statement is true or false
The Volumetric Ethanol Excise Tax Credit (VEETC) is a tax credit (which acts like a subsidy) for registered ethanol-gasoline blenders. Qualified blenders receive $0.51 for each gallon of pure ethanol they blend into gasoline
What statement is TRUE? A) With a subsidy, the price paid by consumers will be lower than without a subsidy. B) Without a subsidy, the quantity produced by blenders will be greater than the quantity demanded. C) With a subsidy, the equilibrium quantity produced will be lower than without a subsidy. D) With a subsidy, production will be efficient.
Legal or governmental restrictions that give monopolistic advantages to a firm include all of the following EXCEPT
A) economies of scale. B) tariffs. C) licenses. D) franchises.