Monetarists argue that the Federal Reserve should allow the money supply to grow:
A. counter to the business cycles.
B. faster than 10 percent annually.
C. only during recessions.
D. at a constant rate.
Answer: D
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A decrease in the population of an economy is likely to lead to lower wages and a lower quantity of labor used
Indicate whether the statement is true or false
To prevent shortages of cash during a crisis, the Fed: a. saves up cash in bank vaults around the country and the world. b. reduces liquidity in the economy so that more cash can be saved. c. sells U.S. government securities to commercial banks
d. demands interest payments on reserves held at the Fed. e. increases the discount rate.
When the United States imposes a tariff on an imported good, the
A) quantity of the good produced in the United States decreases. B) amount imported increases. C) price of the good in the United States falls. D) outcome becomes more efficient. E) quantity of the good purchased in the United States decreases.
Protecting intellectual property rights:
A. gives no incentive to innovate. B. encourages research and development. C. will increase total surplus for society. D. only benefits producers in society.