If the Fed wants to reverse the effects of a favorable supply shock on unemployment, it should
a. increase the money supply growth rate which raises the inflation rate.
b. increase the money supply growth rate which reduces the inflation rate.
c. decrease the money supply growth rate which raises the inflation rate.
d. decrease the money supply growth rate which reduces the inflation rate.
d
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Sales taxes are generally progressive.
A. True B. False C. Uncertain
You are given the following information on the banking system
Reserve requirement rr = 0.08 Currency-deposit ratio c = 0.10 Excess reserve ratio e = 0.05 Compute the simple deposit and money multipliers.
"As consumption of a good increases, the extra satisfaction received from consuming an additional unit of the good decreases." This statement is known as the law of:
a. demand. b. increasing costs. c. diminishing marginal utility. d. diminishing marginal returns. e. total utility.
The exchange rate is the
a. value of money b. quantity of dollars, yen, etc., that are traded c. amount of a foreign currency that is used to buy goods made in your country d. number of units of your currency that it takes to buy one unit of a foreign currency e. number of units of a foreign currency that can be bought with one unit of your own currency