Proponents of the new classical macroeconomics do not believe which of the following?
A) Wages and prices will adjust rapidly in the economy.
B) Workers and firms use information contained in Fed policy to form inflation expectations.
C) The economy will normally be at its potential level.
D) Expansionary monetary policy can be an effective policy tool.
D
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When is a particular bank in a position to make new loans? a. When required reserves equal actual reserves
b. When required reserves exceed actual reserves. c. When required reserves are less than actual reserves. d. all of the above
Acreage allotments, which limit the number of acres planted with a particular crop, has an effect on the crop's price which is:
A. Consistent with a price-support program B. Contradictory to a price-support program C. Consistent with a price-ceiling for the crop D. Disadvantageous to the farmers of the crop
When the free-rider problem exists,
a. the market will devote too few resources to the production of the good. b. the cost of the good will always be more than the benefit of the good. c. the good will not be produced. d. entrepreneurs will eventually find a way to make free-riders pay their share.
In the following equation, gdp refers to gross domestic product, and FDI refers to foreign direct investment. ? log(gdp) = 2.65 + 0.527log(bankcredit) + 0.222FDI (0.13) (0.022) (0.017) ? Which of the following statements is then true?
A. If gdp increases by 1%, bank credit increases by 0.527%, the level of FDI remaining constant. B. If bank credit increases by 1%, gdp increases by 0.527%, the level of FDI remaining constant. C. If gdp increases by 1%, bank credit increases by log(0.527)%, the level of FDI remaining constant. D. If bank credit increases by 1%, gdp increases by log(0.527)%, the level of FDI remaining constant.