Most Keynesians suggest that the Fed
A) use discretion in setting monetary policy.
B) use fiscal policy to combat unemployment in the short run.
C) follow a rule, such as keeping the money growth rate at 3%, regardless of the state of the economy.
D) use fiscal policy to combat inflation in the long run.
A
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A shift in the aggregate planned expenditure curve as a result of an increase in the price level results in
A) no movement along the aggregate demand curve and no shift in the aggregate demand curve. B) an upward movement along the aggregate demand curve. C) a downward movement along the aggregate demand curve. D) a rightward shift in the aggregate demand curve. E) a leftward shift in the aggregate demand curve.
According to the equation of exchange, if real GDP is $2 trillion and the money supply is $0.5 trillion, the velocity of money: a. must be 4
b. must be 1/4. c. must be 4 trillion. d. must be 1/4 trillion. e. cannot be determined unless we know the price level.
Public debt held by foreigners is known as
a. international debt b. external debt c. tariffs d. custom duties e. debentures
In a barter economy,
A) money trades for goods, goods trade for services, and services trade for money. B) goods and services trade for other goods and services. C) some goods are more readily accepted in exchange than others. D) making exchanges takes less time (on average) than in a money economy. E) b and c