1A. Which of the following statements is not true? Group of answer choices *A decrease in the real money supply while the price3 level and real domestic income are constant *An increase in real domestic income while the price level and the real money supply are constant. *An increase in the price4 level while real domestic income and the nominal money supply are rising *An increase in the price level while real domestic income and the nominal money supply are constant B. Which of the following is not an example of time inconsistency? Group of answer choices *Starting a course of medicine and then stopping before the end of the treatment because you feel better *Drinking so much at a party that you have a hangover in the morning *Pursuing a college education with high student loans, in the expectation of increased future prospects *Drinking too much at a party and then driving home in your car C. Fine-tuning the economy is not easy due to which of the following problems? Group of answer choices *All of the statements are true. *Forecasting errors *Lags *Time-inconsistency D. What are the twin goals of macroeconomic policy? Group of answer choices *Inflation and inflation targeting *Stability and consistency *Prosperity and a balanced budget *Stability and prosperity E. According to the practice of the Federal Reserve, which of the following interest rates is normally the highest one? Group of answer choices *Rates A and B are always equal, and C is always lower *The Federal funds rate target *The rate paid on commercial banks' deposits of reserves *The discount rate
1A. Which of the following statements is not true? Group of answer choices *A decrease in the real money supply while the price3 level and real domestic income are constant *An increase in real domestic income while the price level and the real money supply are constant. *An increase in the price4 level while real domestic income and the nominal money supply are rising *An increase in the price level while real domestic income and the nominal money supply are constant B. Which of the following is not an example of time inconsistency? Group of answer choices *Starting a course of medicine and then stopping before the end of the treatment because you feel better *Drinking so much at a party that you have a hangover in the morning *Pursuing a college education with high student loans, in the expectation of increased future prospects *Drinking too much at a party and then driving home in your car C. Fine-tuning the economy is not easy due to which of the following problems? Group of answer choices *All of the statements are true. *Forecasting errors *Lags *Time-inconsistency D. What are the twin goals of macroeconomic policy? Group of answer choices *Inflation and inflation targeting *Stability and consistency *Prosperity and a balanced budget *Stability and prosperity E. According to the practice of the Federal Reserve, which of the following interest rates is normally the highest one? Group of answer choices *Rates A and B are always equal, and C is always lower *The Federal funds rate target *The rate paid on commercial banks' deposits of reserves *The discount rate
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1A.
Which of the following statements is not true? Group of answer choices
*A decrease in the real money supply while the price3 level and real domestic income are constant
*An increase in real domestic income while the price level and the real money supply are constant.
*An increase in the price4 level while real domestic income and the nominal money supply are rising
*An increase in the price level while real domestic income and the nominal money supply are constant
B.
Which of the following is not an example of time inconsistency? Group of answer choices
*Starting a course of medicine and then stopping before the end of the treatment because you feel better
*Drinking so much at a party that you have a hangover in the morning
*Pursuing a college education with high student loans, in the expectation of increased future prospects
*Drinking too much at a party and then driving home in your car
C.
Fine-tuning the economy is not easy due to which of the following problems? Group of answer choices
*All of the statements are true.
*Forecasting errors
*Lags
*Time-inconsistency
D.
What are the twin goals of macroeconomic policy? Group of answer choices
*Inflation and inflation targeting
*Stability and consistency
*Prosperity and a balanced budget
*Stability and prosperity
E.
According to the practice of the Federal Reserve, which of the following interest rates is normally the highest one?
Group of answer choices
*Rates A and B are always equal, and C is always lower
*The Federal funds rate target
*The rate paid on commercial banks' deposits of reserves
*The discount rate
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