The outside lags related to monetary policy tend to be quite long.
Answer the following statement true (T) or false (F)
True
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The unanimity property states that the ranking between any two outcomes should not depend on whether some third outcome is available
a. True b. False Indicate whether the statement is true or false
Which monetarist idea has been absorbed into mainstream macroeconomics?
A. The net export effect has a stronger effect on fiscal policy than monetary policy B. Cuts in tax rates significantly increase the productive capacity of the economy over the historical averages C. Excessive growth in the money supply over long periods leads to inflation D. The Federal funds rate is a more important monetary target than the money supply
When the government reduces income taxes, it is trying to stimulate which of the following components of GDP?
A. Gross investment B. Government purchases C. Consumption D. Net exports
Refer to the scenario above. Each firm will face a demand of ________ units of Good A if both of them charge a price of $60
A) $1,000 B) $1,500 C) $2,000 D) $3,000