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?