Assuming an increase in money demand, then if the Federal Reserve
a. can keep the interest rate unchanged assuming that it changes the monetary base by the appropriate amount.
b. would have to aim below their previous money stock target.
c. would not have to cut taxes to keep output from falling.
d. All of the above
e. None of the above
A
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Which of the following correctly comments on the following statement? "The only way to increase the revenue from selling a product is to increase the product's price."
A) This statement is not true. Revenue will increase as the price of the product increases only if demand is inelastic. B) It is not true. Revenue will increase as the price of the product increases only if demand is elastic. C) This statement is not true. Revenue will decrease as the price of the product increases because quantity demanded will fall. D) The statement is true.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 did not prohibit companies issuing securities from paying the credit-rating agencies to rate them. This is an example of which remedy of conflicts of interest?
A) regulate for transparency B) supervisory oversight C) leave it to the market D) socialization of information production
Which of the variables does not pass the t-test at the .05 level of significance?
A) PA B) PB C) A D) I E) All the variables pass the t-test.
Which of the following statements is FALSE?
A. An equal distribution of income would eliminate absolute poverty. B. In a relative sense, the problem of poverty will always exist. C. An equal distribution of income would eliminate relative poverty. D. The official absolute poverty level in the United States is far above the average income of many countries in the world.