• 2022-05-29
    Which of the following is FALSE?
    A: in the long run, a central bank can effectively limit inflation
    B: in the long run, a central bank can do fairly little to stimulate real GDP
    C: in the long run, monetary policy has no effect on nominal GDP
    D: unless inflation is very high, stimulating the economy does more to enhance economic welfare than controlling inflation
    E: a central bank can lower the inflation rate but only by allowing for a loss in real GDP, at least in the short run
  • C

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    内容

    • 0

      If a central bank wants to avoid high inflation in an economic boom it can A: try to lower investment spending though open market purchases B: raise interest rates in an effort to affect aggregate supply C: lower bank reserves by buying government bonds D: decrease the level of potential GDP by permanently restricting money supply growth E: none of the above

    • 1

      If the inflation rate in the United States is higher than that in Germany and productivity is growing at a slower rate in the United States than it is in Germany, in the long run, _________

    • 2

      Which of the following statements is the most accurate? In general,_____________ A: the monetary approach to the exchange rate is a long run theory. B: the monetary approach to the exchange rate is a short run theory. C: the monetary approach to the exchange rate is both a short and long run theory. D: the monetary approach to the exchange rate neither long run nor short run theory. E: the monetary approach to the exchange rate is considered less practical than the law of one price.

    • 3

      Which of the following is a FALSE statement? A: the very long run focuses on the growth of productive capacity B: in the very long run, the productive capacity is assumed to be given C: in the very short run, shifts in aggregate demand determine how much output is produced D: fluctuations in the rates of inflation and unemployment are important long-run issues E: at the full-employment level of output, capital is not used 100 percent

    • 4

      By lowering short-term interest rates, a central bank can stimulate economic activity A: since it encourages more investment spending B: since more durable consumption goods will be bought C: but only in the short run D: but it may lead to a higher price level E: all of the above