Monetary policy is not the only type of policy that affects interest rates.
Answer the following statement true (T) or false (F)
True
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If the initial distribution of labor and capital is Pareto optimal, which of the following statements is TRUE?
A) It is possible to reallocate labor and capital across industries so as to increase the production of one good without decreasing the production of another good. B) It is possible to reallocate labor and capital across industries so as to increase the production of one good, but only by reducing the production of another good. C) It is possible to reallocate labor and capital across industries so as to increase the production of every good. D) none of the above
A change in consumers' expectations about the future will shift both the aggregate expenditure curve and the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
Refer to Figure 14.2. A movement from point d to point b could be caused by a(n):
A. increase in government spending. B. increase in the price of oil. C. increase in taxes. D. decrease in short-run aggregate supply.
One reason that college graduates earn higher wages than non-graduates is because:
A. college graduation serves as a signal of the individual's productivity. B. there are no additional skills learned in college that increase productivity. C. college graduates are always less intelligent than non-college graduates. D. college graduates are less equipped to deal with technological change, as their skills are technology-specific.