Multiple Choice
In the Friedman-Lucas money surprise model,a surprise increase in money supply growth
A) has no effect on inflation.
B) increases inflation less than in proportion to the growth rate of the money supply.
C) increases inflation in an equal proportion to the growth rate of the money supply.
D) increases inflation more than in proportion to the growth rate of the money supply.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Time inconsistency means<br>A) taking different decisions at
Q3: The fact that private sector economic agents
Q4: The rational expectations hypothesis means that<br>A) economic
Q5: The idea that economic agents do not
Q6: A Phillips curve is<br>A) the correlation between
Q8: In the Friedman-Lucas money surprise model<br>A) productivity
Q9: A predominant view among Federal Reserve officials
Q10: The Phillips curve shifts because<br>A) private behavior
Q11: The Phillips curve shifts because<br>A) fiscal policy
Q12: If the central bank cannot commit,then<br>A) the