The actual inflation rate will be equal to the

This preview shows page 7 - 8 out of 8 pages.

the actual inflation rate will be equal to the natural inflation rated.the budget deficit will be equal to zeroe.the money supply will be growing at a constant rate per year
According to the monetarists, in the long-run, the Phillips Curve is:
Which of the following statements is true about supply-side economics?
Those who oppose a Constitutional amendment to require a balanced federal budget would make which of the following arguments:
d. Budget deficits can cause an increase in the trade deficit by appreciating the dollar. If the money supply is: The interest rate is:$100 billion 10%120 billion 8%140 billion 6%160 billion 4%120 billion 2%If the interest rate is: Investment spending is:10% $10 billion8% 20 billion6% 30 billion4% 40 billion2% 50 billionAssume that equilibrium GDP is $400 billion, potential GDP is $500 billion, the marginal propensityto consume is 9/10, the interest rate is 8%, investment spending is $20 billion, the money supply is $120 billion, and the reserve requirement is 1/10. By how much and in what direction should the Fed change the monetary base?a. increase it by $20 billion d. increase it by $2 billionb. decrease it by $100 billion e. decrease it by $10 billionc. increase it by $90 billion

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture