Monetarists argue that the money supply should
A. grow at a rate greater than the average growth of real output.
B. grow at a rate slower than the average growth of real output.
C. grow at a rate equal to the average growth of real output.
D. be held constant over the business cycle.
Answer: C
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For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true with regard to opportunity costs in the two countries?
a. The opportunity cost of producing watches is lower in Denmark. b. The opportunity cost of producing cheese is lower in Denmark. c. The opportunity cost of producing watches is identical in both countries. d. It is impossible to compare opportunity costs because the two countries use different currencies. e. In Germany the opportunity cost of producing one pound of cheese is one watch.
Which of the following is NOT among the primary functions of money?
A) store of value B) indicator of supply C) an object that is generally accepted in return for goods and services D) unit of account E) medium of exchange
Refer to the figure above. Which of the following is likely to happen if a price control of $80 is imposed in the market?
A) There will be a surplus of 25 units in the market. B) There will be a shortage of 25 units in the market. C) There will be a surplus of 10 units in the market. D) There will be a shortage of 10 units in the market.
Cut on tax & debt
What will be an ideal response?