The new growth theory was developed by ________ and proposes that ________
A) Thomas Malthus; increases in population drive wages to their subsistence level
B) Ben Bernanke; changes in the money supply drive economic growth
C) Paul Romer; the desire for profits drives increases in real GDP per person
D) Adam Smith; markets will determine the appropriate economic growth rate
E) Robert Solow; increases in technology growth are responsible for economic growth
C
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When the exchange rate, E, and the foreign price level, P*, is fixed, domestic inflation depends primarily on
A) amount of aggregate demand. B) home price level set by IMF. C) current account balance. D) government tax policy. E) foreign interest rates.
Everything else held constant, in the market for reserves, when the supply for federal funds intersects the reserve demand curve on the downward sloping section, decreasing the interest rate paid on excess reserves
A) increases the federal funds rate. B) lowers the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.
A firm's cost curve is determined by
A) congressional laws. B) whether the firm hires engineers or not. C) natural laws. D) the firm's production function.
If X and Y are complementary goods, the demand curve for X will shift to the right when the price of Y increases
a. True b. False Indicate whether the statement is true or false