Multiple Choice
Which of the following is true?
I. The quantity theory predicts that in the long run the inflation rate equals the money growth rate minus the growth rate of potential GDP.
II. If the Fed decreases the federal funds rate, aggregate demand increases.
III. The Fedʹs monetary policy works by shifting the short-run aggregate supply curve.
A) II and III
B) I, II and III
C) I and II
D) I and III
Correct Answer:
Verified
Correct Answer:
Verified
Q68: Which of the following leads to an
Q69: Keynesian economists believe that<br>A) activist government policy
Q70: The opportunity cost of a good is<br>A)
Q71: An increase in the amount of capital
Q72: If the U.S. interest rate differential _,
Q74: Which of the following increases the demand
Q75: If productivity constantly increases, then the real
Q76: If the Fed makes an open market
Q77: If the Fed is concerned with lowering_
Q78: At full employment,<br>A) the unemployment rate is