In the long run, if the Fed increases the growth rate of the money supply,
a. inflation will be higher.
b. unemployment will be lower.
c. real GDP will be higher.
d. All of the above are correct.
a
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Increased investment spending in the economy would be a possible result of
A) an increase in interest rates. B) a decrease in the money supply. C) an open market sale of bonds by the Fed. D) an open market purchase of bonds by the Fed.
Hyperinflation is defined as periods of
A) inflation over 25 percent per year B) negative price changes. C) low inflation. D) inflation over 50 percent per month. E) inflation under 10 percent per year.
One of the least squares assumptions in the multiple regression model is that you have random variables which are "i.i.d." This stands for
A) initially indeterminate differences. B) irregularly integrated dichotomies. C) identically initiated deltas (as in changes). D) independently and identically distributed.
Total output per worker is also called:
A. total product. B. average product. C. variable product. D. marginal product.