In the "cost of capital channel" of monetary policy, a higher interest rate __________ spending
A) raises consumption
B) raises investment
C) lowers consumption
D) lowers investment
D
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Which of the following is NOT a disadvantage of of the Fed's "just do it" approach to monetary policy?
A) There is low transparency of policy. B) There is low accountability for central bankers. C) This type of policy make the Fed more susceptible to the time-inconsistency problem. D) It relies on a stable money-inflation relationship.
Economic growth can be illustrated by: a. a movement along the production possibilities curve
b. a movement from a point on the production possibilities curve to a point inside the production possibilities curve. c. an inward shift of the production possibilities curve. d. an outward shift of the production possibilities curve.
Which of the following statements is not true?
A. There is a wage premium for investing in high levels of education. B. The wage premium of men and women college graduates has been increasing over time. C. Better-educated individuals are more productive. D. Public policy initiatives that support on-the-job training have been met with mixed results.
Structural stagnation focuses on ________ in terms of understanding why the economy experiences slow growth.
A. low consumption B. low government spending C. low investment D. globalization