The proponents of rational expectations and monetarism think that the Federal Reserve should adopt
A) a constant monetary growth rule. B) an interest rate target.
C) a monetary aggregate target. D) an inflation target.
A
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If AVC=$5 and AFC=15, then ATC=
a. $10 b. $5 c. $15 d. $20
One of the concepts that is illustrated by a downward sloping production possibilities frontier is that
a. technology must change in order to produce more of a particular good b. to produce more of one good, some of the alternative goods must be given up c. opportunity cost generally declines as more of a good is produced d. specialization leads to gains in overall utility for society e. opportunity cost generally does not vary as more of a good is produced
Which of the following is NOT one of the lags that makes timely fiscal policy difficult?
A. Business Cycle lag B. Recognition lag C. Legislative lag D. Implementation lag
Which of the following would cause aggregate demand to decrease?
A. Businesses and households believe that the economy is headed for good times, so they begin to feel increased security about their jobs. B. A drop in the foreign exchange value of the dollar C. The Fed increases the amount of money in circulation. D. The government increases taxes on both business and personal income.