GDP is a measure of the total output of an economy
a. True
b. False
Indicate whether the statement is true or false
True
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Jim has the following assets and liabilities:Credit Card balance$2,000Cash$500Government bonds$2,000Stocks$5,000Checking$750Car loan balance$5,000Car$15,000Which of the following actions would decrease Jim's money demand by $200?
A. Jim writes a $200 check for cash and holds the cash. B. Jim sells a $200 government bond and puts the proceeds in his checking account. C. Jim writes a check for $200 to pay down his credit card balance. D. Jim sells $200 worth of stocks and puts the proceeds in his checking account.
Inflation targeting has typically been accompanied by lower inflation
Indicate whether the statement is true or false
Which of the following best describes the policy ineffectiveness proposition?
A) Monetary policy cannot change real GDP in a regular or predictable way. B) Policymakers can be effective in changing real GDP only if people's expectations are correct. C) Monetary policy can change real GDP only if the Fed pursues a consistent, stable growth rate of the real money supply. D) Fiscal policy is totally ineffective in changing real GDP in both the short run and the long run.
Which of the following is true concerning the effects of inflation?
a. inflation hurts those on fixed incomes b. inflation benefits debtors c. inflation hurts creditors d. All of the above are true.