According to classical economists, inflation occurs when the annual rate of growth in the money supply
a. exceeds the annual rate of growth of full-employment real GDP
b. equals the annual rate of growth of full-employment real GDP
c. exceeds the annual rate of growth of money velocity
d. is less than the annual rate of growth of money velocity
e. is less than the annual rate of growth of full-employment nominal GDP
A
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Suppose the Fed decreases the money supply. In response households and firms will ________ short term assets and this will drive ________ interest rates
A) sell; down B) buy; down C) sell; up D) buy; up
The Fed can use expansionary monetary policy to lower interest rates to stimulate aggregate demand
Indicate whether the statement is true or false
Since the government has been paying out farm subsidies
A. the number of family farms has increased by about 40 percent. B. the number of family farms has increased by 10%. C. the number of family farms has decreased by 10%. D. the number of family farms has decreased by 70 percent.
Of the following high-income countries, which has the highest male life expectancy at age 65?
A) Canada B) Japan C) the United Kingdom D) the United States