Economist Jones favors a constant-money-growth-rate rule. She says that if the annual money supply growth rate each year is equal to the average annual growth rate in Real GDP, price stability will exist over time. What would economist Smith, who favors activist monetary policy, say to economist Jones?

Answers

Answer 1

Answer: d. b and c

Your analysis assumes that velocity is constant, and it is not.

Your analysis assumes that you can correctly define the money supply

Explanation:

Here are the options for the question:

a. Your analysis assumes that Real GDP is constant over time, and it is not.

b. Your analysis assumes that velocity is constant, and it is not.

c. Your analysis assumes that you can correctly define the money supply.

d. b and c

e. a, b and c

According to the constant-money-growth-rate rule, the government should target money growth rate in a way that it will be equal to growth rate of the real GDP.

The likely thing that economist Smith, who favors activist monetary policy would say to economist Jones is that Jones is assuming velocity will be constant, and is also correctly defining the money supply which should not.be the case as velocity isn't always constant.


Related Questions

Q2. 90% of flights depart on time. 80% of flights arrive on time. 75% of flights depart on time and arrive on time. Are the events, departing on time and arriving on time, independent?

Answers

Answer:

Events departing on time and arriving on time are NOT independent.

Explanation:

If two events A and B are independent, then

P(A and B) = P(A) * P(B)

Here

A = flights depart on time

B = flights arrive on time

P(A) = 0.90

P(B) = 0.80

If A and B are independent, then

P(A and B) = P(A) * P(B) = 0.9 * 0.8 = 0.72

Since

the observed value of P(A and B) is 0.75,

assuming that there are no observation errors, we conclude that the two events A and B are not independent.

A salesperson obtains several listings by going door-to-door in a neighborhood and warning residents that property values will drop once members of minority groups begin moving into the neighborhood. This would be considered:

Answers

Answer:

Blockbusting

Explanation:

Blockbusting is defined as a practice where agents persuade owners to sell properties at a lower price by creating fears that people of another race or class will enter the area and property prices will drop.

The properties are sold afterwards for higher prices, therefore the agent makes profit.

This is a tactic used in the United States by real estate agents to convince white people sell property at a cheap price by creating fear of minorities entering the neighbourhood

When a production possibilities frontier is bowed out it shows... Group of answer choices that there is no transaction cost going from one good to the next. an example of increasing opportunity cost. that resources are perfectly shiftable from the production of one good to another. All of these answers are correct.

Answers

Answer:

that resources are perfectly shiftable from the production of one good to another.

Explanation:

Production possibilities frontier defines that is a graph showing all the different production combinations of two products which can be manufactured using present resources and technology. The production possibilities frontier incorporates scarcity, option and trade-off principles.

In other term Production possibilities frontier Indicates the cumulative production mixture of different products or services that an economy can achieve by making optimal use of all available resources.

Other Questions
Assume m A grocer wants to make a 10-pound mixture of berries and chocolate that he can sell for $3.48 per pound. If chocolate cost $5.40 per pound and berries cost $2.20 per pound, how many pounds of berries must he include in the mix? Calcium carbide, CaC2, reacts with water to form calcium hydroxide and the flammable gas ethyne (acetylene) in the reaction: What mass of ethyne can be produced Which of the following is true for both presidents roosevelt and wilson During 2021, Farewell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Farewell did not declare or pay any dividends during 2021. Farewell's net income for the year ended December 31, 2021, was $2.5 million. The income tax rate is 25%. Farewell granted 10,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 20 shares of common stock at an exercise price of $29 per share. The options vest after one year. The market price of the common stock averaged $30 per share during 2021. What is Farewell's diluted earnings per share for 2021, rounded to the nearest cent? A) $3.14. B) $4.90. C) $4.34. D) Cannot determine from the given information. Blue Cab Company had 50,000 shares of common stock outstanding on January 1, 2021. On April 1, 2021, the company issued 20,000 shares of common stock. The company had outstanding fully vested incentive stock options for 5,000 shares exercisable at $10 that had not been exercised by its executives. The end-of-year market price of common stock was $13 while the average price for the year was $12. The company reported net income in the amount of $269,915 for 2021. What is the diluted earnings per share (rounded)? A) $3.60. B) $4.10. C) $4.50. D) $3.81. Smurfs live in widely separated groups and rarely interbreed, so geneticists know very little about them. On one occasion, two smurfs from different groups did mate. A big-footed, white smurf mated with a small-footed, blue smurf. Three offspring resulted: one big-footed and blue and two small-footed and blue.Which statement about the inheritance of color in smurfs is most likely to be correct? 1 Dentro de seis aos tendr el doble de la edad que tena hace cuatro aos. Qu edad tendr dentro de nueve aos? The English Bill of Rights (1689), which guarantees the freedom of speech, the right to a fair trial, and a ban on cruel or unusual punishment, inspired the US Bill of Rights, which is another name for Which are the functions of the respiratory system? Consider the expression. (StartFraction 2 m Superscript negative 1 baseline n Superscript 5 Baseline Over 3 m Superscript 0 Baseline n Superscript 4 Baseline EndFraction) squared What is the value of the expression if m = 5 and n = 3? Negative StartFraction 24 Over 25 EndFraction Negative StartFraction 4 Over 25 EndFraction StartFraction 4 Over 25 EndFraction StartFraction 24 Over 25 EndFraction A. MitochondriaB. Converts energyin the cellC. Stores food andwater in the cellD. MitochondrionWhat letter does not belong in each group and explain your thinking ? PLEASE HELP ME ASAP!!!! I DON'T UNDERSTAND THIS!!!! A compound synthesized by bacteria or fungi that destroys or inhibits the growth of other microbes is a/an:__________.a. synthetic drugb. antibioticc. antimicrobial drugd. competitive inhibitor Question 5 (5 points)Which of the following statements is NOT true of watercolor painting?pigments are mixed with water and gum arabicthe paper itself is both ground and support2.any value or color of paper can be used15it is a staining technique18Question 6 (5 points)Savedil form baseding date back toEt patia Question 13 of 203 PointsThe Ottoman and Mughal empires had which characteristic in common?A. Both empires built prosperous economies by trading with Europe.B. Both empires treated religious minorities harshly under Sharia law.C. Both empires declined because of constant attacks by foreignenemies.D. Both empires conquered huge territories despite having weakmilitaries. The table shows three unique functions. (TABLE IN PIC) Which statements comparing the functions are true? Select three options. Only f(x) and h(x) have y-intercepts. Only f(x) and h(x) have x-intercepts. The minimum of h(x) is less than the other minimums. The range of h(x) has more values than the other ranges. The maximum of g(x) is greater than the other maximums. HELP ME PLEASE 10 POINTS ON IT PLEASE HELP ME ON THIS ESSAY PLEASE 10 POINTS ON IT PLEASE HELP ME ASAP One morning, Marcia works from 08 20 to 11 15.Find how long slie works for.Give your answer in hours and minutes. The altitude of a triangle is 1cm shorter than the base. If the area of the triangle is 15cm2, calculate the altitude. One of the easiest methods of diversifying away firm-specific risks is to: Multiple Choice build a portfolio with 40 to 55 individual stocks. buy only stocks with a beta of 1.0. purchase stocks that plot above the security market line. purchase the shares of an index fund.