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Question 12 ptsPeople's decision to hold money based on the comparison of the relative returns of money and nonmoney assets is known as<br>People's decision to hold money based on the comparison of the relative returns of money and nonmoney assets is known as

    Flag this QuestionQuestion 22 ptsAccording to Friedman, the opportunity cost of holding money depends on all of the following EXCEPT<br>According to Friedman, the opportunity cost of holding money depends on all of the following EXCEPT
    Flag this QuestionQuestion 32 ptsIf in the short run prices did not respond at all to changes in aggregate demand, the short-run aggregate supply curve would<br>If in the short run prices did not respond at all to changes in aggregate demand, the short-run aggregate supply curve would
    Flag this QuestionQuestion 42 ptsSustained growth in the money supply doesn't affect real output in the long run but does lead to inflation according to<br>Sustained growth in the money supply doesn't affect real output in the long run but does lead to inflation according to
    Flag this QuestionQuestion 52 ptsWhich of the following is a likely causative factor in the movement of <i>M1</i> velocity during the 1980s?<br>Which of the following is a likely causative factor in the movement of  M1 velocity during the 1980s?
    Flag this QuestionQuestion 62 ptsBusiness cycles typically last<br>Business cycles typically last
    Flag this QuestionQuestion 72 ptsCost-push inflation<br>Cost-push inflation
    Flag this QuestionQuestion 82 ptsAccording to the new classical approach to the aggregate supply curve, the aggregate supply curve slopes upward because<br>According to the new classical approach to the aggregate supply curve, the aggregate supply curve slopes upward because
    Flag this QuestionQuestion 92 ptsInflation generates an excess burden whenever<br>Inflation generates an excess burden whenever
    Flag this QuestionQuestion 102 ptsPeriods of contraction in the business cycle are known as<br>Periods of contraction in the business cycle are known as
    Flag this QuestionQuestion 112 ptsMost economists believe that changes in the price level have<br>Most economists believe that changes in the price level have
    Flag this QuestionQuestion 122 ptsWhich of the following schools of thought among economists believe that activist stabilization policy is ever desirable?<br>Which of the following schools of thought among economists believe that activist stabilization policy is ever desirable?
    Flag this QuestionQuestion 132 ptsStabilization policy refers to attempts to<br>Stabilization policy refers to attempts to
    Flag this QuestionQuestion 142 ptsIn the new Keynesian approach, an increase in the nominal money supply<br>In the new Keynesian approach, an increase in the nominal money supply
    Flag this QuestionQuestion 152 ptsWhom did President Jimmy Carter appoint chair of the Board of Governors of the Fed in order to convince the public about his anti-inflation resolve?<br>Whom did President Jimmy Carter appoint chair of the Board of Governors of the Fed in order to convince the public about his anti-inflation resolve?
    Flag this QuestionQuestion 162 ptsTransactions velocity<br>Transactions velocity
    Flag this QuestionQuestion 172 ptsWhich of the following is true of the new Keynesian view of stabilization policy?<br>Which of the following is true of the new Keynesian view of stabilization policy?
    Flag this QuestionQuestion 182 ptsWhich of the following statements is correct?<br>Which of the following statements is correct?
    Flag this QuestionQuestion 192 ptsDuring the late 1970s, households, businesses, and policymakers shifted to the opinion that<br>During the late 1970s, households, businesses, and policymakers shifted to the opinion that
    Flag this QuestionQuestion 202 ptsAccording to New Keynesians, why does an expected change in the money supply affect output in the short run?<br>According to New Keynesians, why does an expected change in the money supply affect output in the short run?
    Flag this QuestionQuestion 212 ptsAccording to the real business cycle model, the correlation between changes in the money supply and changes in output over the business cycle results from<br>According to the real business cycle model, the correlation between changes in the money supply and changes in output over the business cycle results from
    Flag this QuestionQuestion 222 ptsIn Friedman's theory of money demand, when households expect a high rate of inflation, they will<br>In Friedman's theory of money demand, when households expect a high rate of inflation, they will
    Flag this QuestionQuestion 232 ptsWhich school of thought believes that the Fed should seek to reduce inflation in a major, one-shot policy shift that's announced and credible?<br>Which school of thought believes that the Fed should seek to reduce inflation in a major, one-shot policy shift that's announced and credible?
    Flag this QuestionQuestion 242 ptsAccording to the real business cycle model, in the economy's short run equilibrium,<br>According to the real business cycle model, in the economy's short run equilibrium,
    Flag this QuestionQuestion 252 ptsThe liquidity preference theory was developed by<br>The liquidity preference theory was developed by
    Flag this QuestionQuestion 262 ptsAccording to the real business cycle model, changes in the money supply will affect economic activity<br>According to the real business cycle model, changes in the money supply will affect economic activity
    Flag this QuestionQuestion 272 ptsMovements in the growth rate of the money supply are<br>Movements in the growth rate of the money supply are
    Flag this QuestionQuestion 282 ptsIn the aggregate demand-aggregate supply model, if the Federal Reserve decides to decrease the nominal money supply,<br>In the aggregate demand-aggregate supply model, if the Federal Reserve decides to decrease the nominal money supply,
    Flag this QuestionQuestion 292 ptsA classic example of hyperinflation occurred<br>A classic example of hyperinflation occurred
    Flag this QuestionQuestion 302 ptsUnless ratified by policymakers, cost-push inflation will result in<br>Unless ratified by policymakers, cost-push inflation will result in
    Flag this QuestionQuestion 312 ptsThe velocity of money represents<br>The velocity of money represents
    Flag this QuestionQuestion 322 ptsVelocity equals<br>Velocity equals
    Flag this QuestionQuestion 332 ptsWhich of the following would cause demand for <i>M1</i> to increase?<br>Which of the following would cause demand for  M1 to increase?
    Flag this QuestionQuestion 342 ptsA recession begins, but Congress and the President take eighteen months to decide the details of the tax cut that will be used to stimulate the economy. This is an example of<br>A recession begins, but Congress and the President take eighteen months to decide the details of the tax cut that will be used to stimulate the economy. This is an example of
    Flag this QuestionQuestion 352 ptsAt the natural rate of unemployment,<br>At the natural rate of unemployment,
    Flag this QuestionQuestion 362 ptsExpansionary fiscal policy will produce inflation only if<br>Expansionary fiscal policy will produce inflation only if
    Flag this QuestionQuestion 372 ptsIn early 2007, the Bank of England raised its base interest rate unexpectedly. Which school of thought approach to monetary policy did this change in policy most reflect?<br>In early 2007, the Bank of England raised its base interest rate unexpectedly. Which school of thought approach to monetary policy did this change in policy most reflect?
    Flag this QuestionQuestion 382 ptsBen Bernanke and Alan Blinder found evidence that money is<br>Ben Bernanke and Alan Blinder found evidence that money is
    Flag this QuestionQuestion 392 ptsExpansionary shifts of the aggregate demand curve<br>Expansionary shifts of the aggregate demand curve
    Flag this QuestionQuestion 402 ptsThe correct expression for the equation of exchange is<br>The correct expression for the equation of exchange is
    Flag this QuestionQuestion 412 ptsWhich of the following schools of thought among economists believe that unexpected changes in the money supply can affect output in the short run?<br>Which of the following schools of thought among economists believe that unexpected changes in the money supply can affect output in the short run?
    Flag this QuestionQuestion 422 ptsAccording to the Ricardian equivalence proposition,<br>According to the Ricardian equivalence proposition,
    Flag this QuestionQuestion 432 ptsThe low point in a business cycle is known as the<br>The low point in a business cycle is known as the
    Flag this QuestionQuestion 442 ptsStanley Fischer has estimated that the annual excess burden in the United States of an inflation rate of 5% is approximately<br>Stanley Fischer has estimated that the annual excess burden in the United States of an inflation rate of 5% is approximately
    Flag this QuestionQuestion 452 ptsReal money balances equal<br>Real money balances equal
    Flag this QuestionQuestion 462 ptsAccording to Friedman, the opportunity cost of holding money is determined by all of the following EXCEPT<br>According to Friedman, the opportunity cost of holding money is determined by all of the following EXCEPT
    Flag this QuestionQuestion 472 ptsWhich of the following is true?<br>Which of the following is true?
    Flag this QuestionQuestion 482 ptsIn the Baumol-Tobin view, a decrease in interest rates will cause individuals to hold<br>In the Baumol-Tobin view, a decrease in interest rates will cause individuals to hold
    Flag this QuestionQuestion 492 ptsAccording to the new Keynesian approach, changes in the money supply will affect output<br>According to the new Keynesian approach, changes in the money supply will affect output
    Flag this QuestionQuestion 502 ptsWhich of the following statements is correct according to both new classical and new Keynesian economists?<br>Which of the following statements is correct according to both new classical and new Keynesian economists?
   

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