Question 1

The velocity of money is the:

Accepted Answer

A)  relationship between the money supply and the price level. 
B)  number of times per year the average dollar is spent on final goods and services. 
C)  relationship between asset and transactions demands for money. 
D)  price level divided by aggregate supply. 
A)  relationship between the money supply and the price level. 
B)  number of times per year the average dollar is spent on final goods and services. 
C)  relationship between asset and transactions demands for money. 
D)  price level divided by aggregate supply.

Question 2

Which of the following ideas of the rational expectations theory has been absorbed into mainstream macroeconomics?

Accepted Answer

A)  The monetary rule. 
B)  The idea that "money doesn't matter." 
C)  The monetary multiplier. 
D)  The idea that "expectations are important." 
A)  The monetary rule. 
B)  The idea that "money doesn't matter." 
C)  The monetary multiplier. 
D)  The idea that "expectations are important."

Question 3

The theory of rational expectations concludes that:

Accepted Answer

A)  the public's expectations can influence the outcome of monetary policy but not of fiscal policy. 
B)  the public's expectations can influence the outcome of fiscal policy but not of monetary policy. 
C)  the public's expectations as to the effects of economic policies tends to reinforce the effectiveness of those policies. 
D)  by reacting in its self-interest to the expected effects of stabilization policy,the public tends to negate the impact of those policies. 
A)  the public's expectations can influence the outcome of monetary policy but not of fiscal policy. 
B)  the public's expectations can influence the outcome of fiscal policy but not of monetary policy. 
C)  the public's expectations as to the effects of economic policies tends to reinforce the effectiveness of those policies. 
D)  by reacting in its self-interest to the expected effects of stabilization policy,the public tends to negate the impact of those policies.

The velocity of money is the:

Which of the following ideas of the rational expectations theory has been absorbed into mainstream macroeconomics?

The theory of rational expectations concludes that:

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

Filters

Exam 38: Current Issues in Macro Theory and Policy

The velocity of money is the:

Which of the following ideas of the rational expectations theory has been absorbed into mainstream macroeconomics?

The theory of rational expectations concludes that:

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

Filters