Most monetarists favor:
A. frequent changes in the growth rate of the money supply to avoid inflation.
B. placing the Federal Reserve under the Treasury.
C. a steady, gradual shrinkage of the money supply.
D. a constant increase in the money supply year after year equal to the potential annual growth rate in real GDP.
Answer: D
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Goods and services that the United States buys from other nations are called
A) exports. B) imports. C) bartered goods. D) exchanges. E) world goods.
Over the past 20 years, foreign financial investment in the United States has
A) increased significantly. B) decreased significantly. C) remained fairly consistent. D) become negative.
Refer to Table 3.1. If preferences satisfy all four of the basic assumptions:
A) A is on the same indifference curve as B. B) B is on the same indifference curve as C. C) A is preferred to C. D) B is preferred to A. E) Both A and B answer choices are correct.
In 1994, the state of California suffered a devastating earthquake. To help pay for the damages, the state raised its sales tax by one cent per dollar of expenditure on most consumer goods
This state sales tax is an example of what economists call: A) an ad valorem tax. B) a specific tax. C) a neutral tax. D) a negative tax. E) none of the above