According to the growth version of the quantiy theory of money, the growth rate of the money supply equals the inflation rate plus the growth rate of real output
a. True
b. False
Indicate whether the statement is true or false
False
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If the government sells U.S. Treasury bonds to finance its budget deficit, one would expect:
a. interest rates to rise. b. domestic investment to rise. c. tax rates to fall. d. inflation to rise. e. interest rates to fall.
In the short run, efforts to reduce the unemployment rate are likely to cause
a. a decrease in the inflation rate. b. an increase in the inflation rate. c. no change in the inflation rate. d. Uncertain-economists have found no relationship between the two variables.
Since Britain withdrew from the ERM in 1992, what has it done with regard to fixing its exchange rates?
A) Britain has joined with the euro, forgoing its long-standing independence. B) Britain has put the pound back on solid footing by backing it with gold. C) Britain has retained its independent pound currency and not joined the currency union of Europe. D) Britain has abandoned its own monetary authority for the certainty of fixed exchange rates with its largest trading partners.
(Consider This) The average life expectancy of a U.S. business is approximately:
A. 2 years. B. 5.5 years. C. 10.2 years. D. 22 years.