Monetarists reject using discretionary monetary policy as an effective stabilization tool because they believe:
A. if the money supply grows at a rate equal to the economy's long-run rate of economic growth, then the economy will be unstable.
B. that changes in the money stock do not affect output or prices.
C. the Fed will miss its money supply targets and make the economy worse.
D. monetary policy can stimulate aggregate demand, but it cannot affect inflation.
Answer: C
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Which of the following statements is false?
A) There is an indifference curve associated with any combination of goods selected by a consumer. B) A consumer is indifferent among all consumption bundles along a given budget line. C) Consumption bundles that lie on higher indifference curves yield higher utility. D) All consumption bundles along a given indifference curve are equally desirable.
Suppose that the amount of computer printers demanded increases by 20 percent when the price of personal computers falls by 10 percent. The cross price elasticity of demand between computer printers and personal computers is
A) 0.5. B) -2.0. C) -0.5. D) 2.0.
Economic conflict(s) leading to the Civil War ___________________________.
A. were over tariffs and the extension of slavery into the new territories B. was the growing free trade with England C. was Abraham Lincoln freeing the slaves D. None of the choices are true
Unlike demand-pull inflation, cost-push inflation:
A. drives up the price level. B. increases nominal income. C. increases real income. D. is self-limiting.