The monetarists believe
A. the Federal Reserve is very effective at fighting inflation.
B. the key to stable economic growth is a constant rate of increase in the money supply.
C. expansionary monetary policy will permanently reduce the interest rate.
D. the money supply must increase at the same rate as the price level.
B. the key to stable economic growth is a constant rate of increase in the money supply.
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In the principal-agent relationship between a bank manager and a bank teller, the manager is
A) an agent, as is the teller. B) an agent and the teller is a principal. C) a principal and the teller is an agent. D) a principal, as is the teller.
In 2011, the per capital output of goods and services in the United States was approximately
a. $15,000. b. $45,000. c. $8,000. d. $25,000.
In 2012, the U.S. federal government legislation authorized:
A. 152 earmarks totaling $3.3 trillion. B. 2,300 earmarks totaling $8.7 billion. C. 10,160 earmarks totaling $19.6 billion. D. 11,700 earmarks totaling $16.9 billion.
Commercial banks ________ through making loans.
A. create money B. conduct open market operations C. decrease M1 D. change the reserve requirement