According to monetarists,
a. businesses and households are the primary source of instability in the economy.
b. the Federal Reserve causes instability in the economy primarily by allowing instability in the money demand that determines the level of economic activity.
c. the government can stabilize the economy by interfering with the normal misadjustment mechanisms in the private sector.
d. All of the above
e. None of the above
E
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The Wilfer Resort Hotel has a spectacular view of a pine forest along a river bank. Suppose a commercial logger has purchased the pine forest and is planning to clear-cut the forest in a way that has a negative impact on the resort
Can the two parties arrive at a Coasian solution and if so what might that solution be?
An increase in expected inflation causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium
A) rise; rise B) rise; fall C) fall; rise D) fall; fall