The argument advanced by Milton Friedman for adopting a monetary growth rule is that
A) active monetary policy potentially destabilizes the economy.
B) the Fed can control the money supply, but not the level of interest rates.
C) a constant rate of growth in the money supply would eliminate the booms and recessions that make up the business cycle.
D) the growth rate of M1 has been unstable.
Answer: A
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Labor productivity increases when
A) the average number of hours people work goes up. B) the unemployment rate decreases. C) the average output produced per worker during a specified time period increases. D) the average output produced per worker during a specified time period decreases.
If the bus fare of a city increases from $1.00 to $1.10 per ride and as a result total revenue increases, then we know that
A) percentage change in fare is less than percentage change in number of rides. B) percentage change in fare is greater than percentage change in number of rides. C) percentage change in fare is equal to the percentage change in number of rides. D) it is impossible to tell.