Milton Friedman would eliminate the destabilizing effect of the Federal Reserve's monetary policy by
A) eliminating the Federal Reserve.
B) removing the Federal Reserve's political independence.
C) requiring that the Federal Reserve choose a monetary aggregate and increase it at a fixed percentage rate each year.
D) eliminating the Federal Reserve's right to carry out open-market operations.
C
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The five forces model is a framework
a. For increasing buyer force in the market b. For improving competition in the industry c. For analyzing the attractiveness of an industry d. Of matching resources and capabilities of the firm
A horizontal demand curve is perfectly elastic because a change in price will not induce a change in quantity demanded
a. True b. False Indicate whether the statement is true or false
Which of the following portfolio allocation decisions represents the best individual response to an increase in the interest rate on nonmonetary assets?
A. Sell some stocks and use the money to buy bonds. B. Sell some bonds and use the money to buy stocks. C. Sell some nonmonetary assets to get cash. D. Buy some nonmonetary assets with cash.
Write down your understanding and interpretation for each of the following equations, then make sure that you familiarize yourself with these formulas: GDP = C + SP + (T – TR)
What will be an ideal response?