One thing the Fed has learned over the past twenty-five years is:
A. the money multiplier has a trend rate of growth that is fairly constant.
B. it should focus its attention on targeting M2.
C. the money multiplier is fairly constant no matter what changes are made to the monetary base.
D. the money multiplier is unstable over time.
Answer: D
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In the figure above, illustrate the effect of an increase in the U.S. interest rate. What is the effect on the foreign exchange rate?
What will be an ideal response?
Owners of a corporation ________ through dividend payments on shares of that firm's stock
A) share in the profits of the firm B) retain earnings of the firm C) indirectly finance the firm D) issue bonds for the firm
The tax incidence depends on whether the tax is levied on buyers or sellers
a. True b. False Indicate whether the statement is true or false
The first unit of an information product is produced at a high fixed cost. Producing additional units entails relatively
A. low external cost. B. high social cost. C. high average variable cost. D. low marginal cost.