According to the monetarists, which of the following is true?
A. Instability in the money supply is the primary cause of economic instability.
B. A reduction in the money supply will cause consumers to increase spending.
C. A reduction in the money supply will cause a proportional reduction in wages and prices, leaving output unchanged.
D. A rapid growth rate of the money supply will lead to a rapid growth rate of real GDP.
Answer: A
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In the year 2008, nearly half of all privately held federal debt was held by foreign investors.
A. True B. False C. Uncertain
What is potential GDP?
A) It is the level of real GDP in the short run. B) It is the difference between current GDP and maximum GDP. C) It is the level of GDP at which inflation is constant. D) It is the level of real GDP in the long run.
In 1879 . President Rutherford B. Hayes had the first telephone installed in the White House, but it was rarely used because:
a. he didn't know what it was b. it kept breaking and no one could fix it c. hardly anyone else in Washington had a telephone, so there was no one to call or to call in d. hand written letters were considered a more correct form of correspondence
The demand curve for a monopolistic competitor slopes downward because
a. demand drops to zero after a slight price increase. b. there are close but not perfect substitutes for the product. c. customers have no loyalty to the product. d. the product is undifferentiated.