According to monetarists, the main cause of change in the level prices are changes in
A. investment spending.
B. the money supply.
C. government budget deficits.
D. taxes.
B. the money supply.
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In a monopolistically competitive market like retail trade, firms can easily enter and exit the market
a. True b. False Indicate whether the statement is true or false
In foreign exchange markets, the effect of an increase in the supply of dollars on the value of the dollar is the same as that of: a. an increase in the supply of foreign currencies. b. a decrease in the supply of foreign currencies. c. a decrease in the demand for dollars
d. either (b) or (c)
A person who makes decisions that are "merely good enough" is called a(n)
a. optimizer. b. rational person. c. satisficer. d. maxi-minimizer.
Suppose workers' and firms' expectations of the price level and productivity are accurate. In this case, a reduction in productivity will cause which of the following?
A) a decrease in both the real wage and the natural rate of unemployment B) an increase in both the real wage and the natural rate of unemployment C) a decrease in the real wage and no change in the natural rate of unemployment D) an increase in the real wage and a decrease in the natural rate of unemployment E) none of the above