Which of the following describes the Volcker disinflation most accurately?
a. Almost all of the public believed that the Fed would keep money growth low, so unemployment rose less than it would have otherwise.
b. Almost all of the public believed that the Fed would keep money growth low, so unemployment rose more than it would have otherwise.
c. Much of the public did not believe that the Fed would keep money growth low, so unemployment rose less than it would have otherwise.
d. Much of the public did not believe that the Fed would keep money growth low, so unemployment rose more than it would have otherwise.
d
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The transaction demand for money varies
A) directly with the interest rate. B) directly with nominal GDP. C) inversely with nominal GDP only. D) inversely with nominal GDP and real GDP.
Suppose Panama produces only two goods, bananas and hats. If Panama has a comparative advantage in bananas, a move toward free trade will
A) benefit hat workers, harm banana workers, but harm the nation as a whole. B) harm hat workers, harm banana workers, but benefit the nation as a whole. C) harm hat workers, benefit banana workers, but benefit the nation as a whole. D) benefit hat workers, harm banana workers, but benefit the nation as a whole.