The relationship between money and spending is
A) very reliable.
B) very unreliable.
C) not important.
D) None of the above.
B
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The Navigation Acts:
a. placed tariffs on the import of British goods by the colonies. b. prohibited trade between the British West Indies and the colonies. c. allowed colonial trade on British ships commanded by foreign captains. d. encouraged trade between the colonies and the Dutch. e. None of the above is correct.
If the Fed increases the required reserve ratio at a time when banks are holding excess reserves, then: a. the Fed's aim is to increase the money supply
b. banks are likely to lend out more money than they would if the Fed left the reserve ratio alone. c. banks are likely to earn higher profits than they would. d. the money supply will not increase as much as it would if the Fed left the reserve ratio alone. e. the Fed's aim is to conduct open market operations without changing the money supply.
Define a price floor
Assuming velocity is constant, the rate of inflation equals the difference between the rate of:
A. growth in the money supply and the rate of growth in nominal GDP. B. growth in the money supply and the rate of growth in real GDP. C. growth in real wages and the rate of growth in real GDP. D. unemployment and the rate of economic growth.