According to the rational expectations hypothesis, monetary policy can have real effects on such variables as real Gross Domestic Product (GDP) in the short run
A) only when the policy is anticipated.
B) only when the policy is unsystematic and unanticipated.
C) regardless of whether the policy is anticipated or unanticipated.
D) when the Federal Reserve's open market committee operates as expected in either buying or selling bonds.
B
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Depository institutions do all of the following EXCEPT
A) set the required reserve ratio. B) create liquidity. C) pool risks. D) minimize the cost of obtaining funds.
The value of the absolute price elasticity of demand for good X is 3. The absolute price elasticity for good Y is 2. Which good's quantity demanded is less responsive to a change in price?
A) Good X B) Good Y C) They are equally responsive. D) Not enough information is given.
Collusion:
A. rarely occurs in reality. B. never occurs in reality. C. has not occurred in the last hundred years or so, due to government policy outlawing it. D. is a common problem in reality.
Variable inputs are those whose
a. quantity changes as the level of output changes b. costs are irreversible c. quantity remains constant regardless of the level of output d. costs are considered sunk costs e. price is continuously changing