In the model of fiat money developed in Lecture 7, the demand for money is the demand to
hold ________.
Irredeemable Paper Bank Notes.
In the model of fiat money developed in Lecture 7, the supply of money is just the total stock
issued by the central bank because fiat monies _________.
...
Best Grades | Must Pass | Latest Update | Correct Answers | 2024/ 2025
ECO 4223 Exam 2 Questions and Correct
Answers | Latest Update
In the model of fiat money developed in Lecture 7, the demand for money is the demand to
hold ________.
Irredeemable Paper Bank Notes.
In the model of fiat money developed in Lecture 7, the supply of money is just the total stock
issued by the central bank because fiat monies _________.
have no non-monetary uses.
Unlike the gold standard, there is _______ mechanism to govern the supply of money in a fiat
money regime.
no automatic
How a central bank conducts monetary policy will depend _____.
on both the information available to policymakers and the incentives
policymakers face.
In the 1960s and early 1970s, most economists believed there was a stable, exploitable
tradeoff between _____ and ______.
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inflation, unemployment
In the 1970s, the United States experienced _________.
stagflation
The (naiive) Phillips Curve was thought to represent a menu of policy options, whereby
policymakers could achieve a lower unemployment rate so long as they were willing to put up
with _________, and vice versa.
higher inflation
Notable absent from the (naiive) Phillips Curve was a reasonable assumption about
_________.
Inflation Expectations
When inflation expectations decrease, the expectations augmented Phillips Curve shifts
________.
down
The long run Phillips Curve is conventionally drawn as a ______ line that intersects the axis at
__________.
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, Best Grades | Must Pass | Latest Update | Correct Answers | 2024/ 2025
horizontal; the natural rate of unemployment, U".
According to Abrams (2006), political monetary (or business) cycle political monetary cycle
exists in the United States, but only when the President and the _________ share party
allegiance.
Federal Reserve Chair
A country experiences hyperinflation when the price level grows more than __________.
50 percent per month
Use the rule of 70 to calculate approximately how long it will take prices to double in a
country with an inflation rate of 3 percent per month.
23.3 months
(70/3) months
Use the rule of 70 to calculate the approximate inflation rate in a country that has seen its
price level double in 12.1 years.
5.8 percent per year
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