Extreme monetarists assert that changes in the money supply
A. Affect prices and the unemployment rate.
B. Can affect only real GDP.
C. Can affect only the price level.
D. Affect prices and real GDP.
Answer: C
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The Federal Reserve System is run by the President of the United States
a. True b. False Indicate whether the statement is true or false
Stricter loan standards in the mortgage lending sector could cause
A. a demand shift to the right in the housing market. B. a supply shift to the right in the housing market. C. a supply shift to the left in the housing market. D. a demand shift to the left in the housing market.
Other things equal, if there is an increase in nominal GDP:
A. the demand for money will decrease. B. the interest rate will rise. C. bond prices will rise. D. consumption spending will fall.
The 2001 recession was caused principally by
A) a slowing in the growth of the money supply. B) a drop in autonomous consumption spending. C) a decrease in government spending. D) a drop in real business investment.