If all the assumptions underpinning the policy irrelevance proposition are in place, fully anticipated monetary policy will
A) affect the unemployment rate but have no impact on the level of real Gross Domestic Product (GDP).
B) have an impact on real Gross Domestic Product (GDP) but cannot alter the level of unemployment.
C) effectively alter both the rate of unemployment and the level of real Gross Domestic Product (GDP).
D) not change either the level of real Gross Domestic Product (GDP) or the unemployment rate.
D
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Suppose supply decreases, but there is no change in demand. As the market reaches its new equilibrium:
A. excess supply will lead the price to rise. B. excess demand will lead the price to rise. C. excess supply will lead the price to fall. D. excess demand will lead the price to fall.
Commercial banks are divided into ________ bank Federal Reserve regions?
A. 52 B. 12 C. 19 D. 7
Assume Px is the price of good X on the horizontal axis and Py is the price of good Y on the vertical axis. The slope of the budget line equals:
a. Py / PxY. b. PyQy / Px Qx. c. (1 ? Py / Px). d. Px / Py.
A product in the first stage of production is defined as a(n):
a. basic need. b. investment. c. environmental product. d. primary product. e. transitory product.