The policy irrelevance proposition implies that
A) anticipated monetary policy actions are effective in increasing real GDP, but they do not reduce unemployment.
B) anticipated monetary policy actions are effective in stimulating aggregate supply, but they are not effective in stimulating aggregate demand.
C) unanticipated monetary policy actions are equally effective in stimulating both aggregate demand and aggregate supply.
D) anticipated monetary policy actions are ineffective in generating changes in real GDP.
D
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The birth of the Euro
A) resulted in fixed exchange rates between all EMU member countries. B) resulted in flexible exchange rates between all EMU member countries. C) resulted in crawling-peg exchange rates between all EMU member countries. D) resulted in non currency board exchange rates between all EMU member countries. E) resulted in floating exchange rates between all EMU member countries.
Baseball teams shut down in the winter. This is an example of
A) permanently leaving the industry because price is less than average fixed cost. B) temporarily leaving the industry because price is less than average variable cost. C) temporarily leaving the industry because price is less than average fixed cost. D) permanently leaving the industry because price is less than average variable cost.
The formula for finding the present value of an amount M that will be received one year from now, when the interest rate is R, is
A) M × (1 + R/100). B) M × (1 + R). C) M / (1 + R). D) M / R. E) M / (100R).
Assume that peanut butter and jelly are complementary goods. A decrease in the number of peanut butter suppliers will cause the:
a. demand for peanut butter to increase. b. supply of peanut butter to increase. c. demand for jelly to increase. d. demand for jelly to decrease. e. supply of jelly to decrease.