The costs in time and effort incurred by people and firms who are trying to minimize their holdings of cash because of inflation are called
A) menu costs.
B) shoe leather costs.
C) transactions costs.
D) imperfect competition costs.
B
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Central bankers with a relatively steep monetary policy reaction curve will:
A. move interest rates more aggressively when inflation rises, leading to more volatility in output. B. move interest rates less aggressively when inflation rises, leading to less volatility in output. C. move interest rates more aggressively when inflation rises, leading to less volatility in output. D. move interest rates less aggressively when inflation rises, leading to more volatility in output.
Real GDP per capita is calculated by dividing the value of real GDP for a country by the country's adult population
Indicate whether the statement is true or false
Regarding short-range exchange rate movements, which of the following statements is NOT true?
a. they may vary from week to week b. they may vary from hour to hour c. are similar to those of the transaction demand determinants of long-term trends in exchange rates d. determined by arbitrage activity e. both a and b are false
The French economist Jean-Baptiste Say transformed the equality of total output and total spending into a law that can be expressed as follows:
a. Unemployment is not possible in the short run. b. Demand and supply are never equal. c. Supply creates its own demand. d. Demand creates its own supply.