Monetary policy can
A) shift the short-run trade-off between inflation and unemployment if it affects expected inflation.
B) shift the long-run trade-off between inflation and unemployment through changes in cyclical unemployment.
C) shift both the short-run and long-run trade-offs between inflation and unemployment if changes in policy are credible.
D) shift neither the short-run nor long-run Phillips curve trade-offs between inflation and unemployment.
A
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A simple deposit multiplier equal to one implies a required reserve ratio equal to
A) 100 percent. B) 50 percent. C) 25 percent. D) 0 percent.
In the early stages of macroeconomic model building, the money supply is regarded as a policy ________ that is under ________ control by the Federal Reserve
A) goal, perfect B) goal, imperfect C) instrument, perfect D) instrument, imperfect