Which of the following are TRUE regarding Milton Friedman's k-percent money targeting rule?
i. Currently this policy is used by many policy makers.
ii. This rule sets the growth rate of the quantity of money independently of the economy's behavior.
iii. For this policy to work well, the velocity of circulation must be stable.
A) ii and iii B) i and ii C) i only D) ii only E) iii only
A
Economics
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When a monopolistically competitive firm breaks even in the long run, this is equivalent to earning a zero accounting profit
Indicate whether the statement is true or false
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According to the new classical system, an unanticipated increase in the money stock
a. will shift the aggregate supply schedule only. b. will shift the aggregate demand schedule only. c. will shift both the aggregate demand and aggregate supply schedules. d. None of the above
Economics