According to milton friedman inflation is always and

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33.According to Milton Friedman, inflation is always and everywhere, caused by excessive economic growth.A) TrueB) False
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Correct Answer(s):False
34.The reason that the existence of money increases efficiency in the economy is that it allows society to avoid the double coincidence of wants and therefore, allows people to specialize in what they do best.
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35.Assuming that the nominal return on money is equal to zero, the real return to holding money is the inflation rate.
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36.The largest component of household sector wealth is wealth in the stock market.
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37.M2 is more liquid than M1 since M2 includes traveler's checks where M1 does not.A) TrueB) False
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Points Earned:1.0/1.0Correct Answer(s):False
38.The FOMC meets every month unless conditions warrant more frequent meetings.
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39.The Philadelphia Federal Reserve Bank is responsible for monitoring economic activity in their district which includes the economic activity in State College, PA.
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40.According to the lecture discussing the October 2012 FOMC statement, the Fed plans on buying $85 billion per month in longer term securities in hopes of lowering long term interest rates.
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41.According to the lecture discussing the October 2012 FOMC statement, they plan on keeping theirtarget for the federal funds rate in the range of 0 - 0.25% at least through mid 2015.A) TrueB) False
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42.All regional bank presidents of the Federal Reserve system vote at all FOMC meetings.
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43.Open market operations influence reserve supply. For example, an open market sale will increase reserve supply.
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44.According to our discussion on the FOMC statement from August 2007, the Fed was worried aboutinflation getting too high.
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