Which of the following is TRUE regarding the quantity theory of money?
I. The theory predicts that in the long run the inflation rate equals the money growth rate minus the growth rate of real GDP.
II. The theory predicts that countries with high growth rates of money will have high inflation rates.
III. The theory predicts that increases in the growth rate of velocity lowers the inflation rate.
A) I and II
B) II and III
C) I and III
D) I, II and III
A
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The Central Bank of Wiknam increases the money supply at the same time the Parliament of Wiknam passes a new investment tax credit. Which of these policies shift aggregate demand to the right?
a. both the money supply increase and the investment tax credit b. the money supply increase but not the investment tax credit c. the investment tax credit but not the money supply increase d. neither the investment tax credit nor the money supply increase
If people take into account the expected behavior of fiscal and monetary authorities in forecasting the behavior of inflation rates, they are most likely forming their projections using
A. adaptive expectations. B. contractionary expectations. C. inflationary expectations. D. rational expectations.
Mamihlapinatapai is a one-word summary of the volunteer's dilemma from
A) Buddhist monks in Thailand. B) ancient Hawaii. C) the Maasai tribe of Tanzania. D) the Yaghan Indians.
Which of the following have contributed to health insurance becoming commonplace during the latter half of the twentieth century?
a. The tremendous rise in medical costs. b. The increase in fraternal order societies which provided health insurance. c. The growth of employer-provided health care. d. all of the above e. a and c