Targeting money growth will lead to stable output growth only if

a. money demand and velocity change proportionally with output.
b. fiscal policy remains unchanged.
c. money demand and velocity are stable.
d. the IS curve is steep.

C

Economics

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In the figure above, illustrate the effect of an increase in the U.S. interest rate. What is the effect on the foreign exchange rate?

What will be an ideal response?

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The approach to GDP that sums compensation of employees, rental income, corporate profits, net interest, proprietors' income, depreciation, and indirect taxes and subtracts subsidies is the

A) opportunity cost approach. B) expenditure approach. C) added cost approach. D) income approach.

Economics