Adherents of the traditional monetary rule advocate that the:
A. functional finance approach to fiscal policy be adopted.
B. money supply should be increased by a constant rate year after year.
C. money supply should be reduced during inflation and increased during recession.
D. money supply should be increased during inflation and reduced during recession.
B. money supply should be increased by a constant rate year after year.
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Fill in the blank: Wealth, in the economic way of thinking, is ________
A) whatever people value B) owned financial assets C) impossible to study scientifically D) indefinable E) any material thing
Resource price differentials that do not trigger the reallocation of resources are known as
a. temporary differentials b. market differentials c. conditional differentials d. permanent differentials e. sustainable differentials
If a firm can charge different prices for each consumer it can practice
A) second degree price discrimination. B) perfect price discrimination. C) third degree price discrimination. D) consumer surplus reversal
A bank initially has $190 million in assets and $150 million in liabilities. The banks net worth (capital) is _____________ million. If the bank's assets increase by 10% and its liabilities do not change, its capital increases by ____________
A) $340; 10% B) $40; 47.5% C) $40; 10% D) $40; 32.2%