Which of the following ideas of the rational expectations theory has been absorbed into mainstream macroeconomics?
A. The monetary rule.
B. The idea that "money doesn't matter."
C. The monetary multiplier.
D. The idea that "expectations are important"
D. The idea that "expectations are important"
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At various times, the United States has undergone the painful process of reducing military spending. Military bases from the Carolinas to California pleaded to be spared, citing huge job losses if they close. How can one rationally decide which bases to shut down, given the necessity of jobs?
Buying shares of corporate stock tends to be risky when
A) all of the above are true. B) the stock of a single corporation is purchased. C) the stock may have to be sold within a few months. D) all stocks bought are in the same industry.
When the Fed uses monetary policy targets, they cannot use both a money supply target and an interest rate target at the same time because
A. It is easier for the Fed to keep track of, and influence, the interest rate B. Interest rates are determined by money supply and money demand that the Fed does not control money demand C. The Fed is only allowed to choose one target at a time to publish the Congress
Providing workers with on-the-job training will increase:
A. the unemployment rate. B. the share of the population employed. C. average labor productivity. D. the labor force participation rate.