The monetary policy transmission mechanism refers to the concept that monetary policy:
A. affects the economy in potentially many ways.
B. only works through changes consumption and investment.
C. works quickly.
D. always seems to work the way central bankers think it will.
Answer: A
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In August 1971, President Nixon implemented price and wage controls to combat inflation. Which of the following statements best describes the change in price levels after the price controls policy was implemented?
a. Inflation remained almost the same for many years. b. The rate of inflation decreased and remained around 3 percent throughout 1972. c.. The rate of change in prices fell below zero in mid-1970s. d. Implementation of controls led to an increase in inflation rates in 1972.
The consumption of goods and services has both a money price and a time price
a. True b. False
Which of the following provides a longer run measure of the exchange rate?
a. purchasing power parity (PPP) b. exchange rate c. GDP per capita d. GDP
A price-discriminating monopolist will follow a system where:
A. Buyers with inelastic demand are charged higher prices than buyers with elastic demand B. Buyers with inelastic demand are charged lower prices than buyers with elastic demand C. All buyers are charged the same price regardless of their elasticity of demand D. The price of the product is held the same even if the demand changes