Monetarists consider timing variations in the relationship between money supply changes and income changes to be
A) a fundamental problem of counter-cyclical monetary policy.
B) inconsequential relative to the problem of instability in the velocity of money.
C) a fundamental long-run problem but not a significant problem in the short run.
D) offset by predictable changes in the money multiplier.
A
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Suppose a Nintendo Wii has a price of 24,000 yen in Japan and the yen-dollar exchange rate changes from 80 yen to the dollar to 100 yen to the dollar? What happens to the price of the Wii measured in dollars?
What will be an ideal response?
If the economy is in recession and the number of used baby clothing stores increases, then:
a. used baby clothes are a necessity. b. used baby clothes are an inferior good. c. used baby clothes are a normal good. d. new baby clothes are a luxury. e. used baby clothes have price-elastic demand.
The short run is the time period during which
a. all of the firm's costs are fixed. b. the value of the firm's assets starts to decay. c. the firm can adjust all inputs freely. d. some of the firm's input decisions are constrained by previous commitments.
As a group, oligopolists would always earn the highest profit if they would
a. produce the perfectly competitive quantity of output. b. produce more than the perfectly competitive quantity of output. c. charge the same price that a monopolist would charge if the market were a monopoly. d. operate according to their own individual self-interests.