A factor increasing the popularity of monetarism in the late 1970s was the
a. ease with which the Fed controlled the money supply.
b. excellent performance of the economy in the 1970s.
c. the fear of budget deficits and growing federal debt.
d. the predictable behavior of velocity until about 1980.
d
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Which of the following is not one variable in the equation of exchange? a. Real output
b. The interest rate. c. The money supply. d. The price level.
Explain how changes in net wealth, the price level, interest rates, and expectations alter the consumption curve
Felix deposited $500 into an account two years ago. The first year he earned 3 percent interest and the second year he earned 5 percent interest. How much money does Felix have in his account now?
a. $540.75 b. $540.80 c. $540.85 d. None of the above are correct to the nearest cent.
If a two percent increase in the price of bananas leads to a two percent decrease in the quantity of bananas demanded, then the demand for bananas is
A. perfectly inelastic. B. inelastic. C. unit-elastic. D. elastic.