The money supply is
A) the rate at which the Federal Reserve Board prints currency.
B) limited to currency and coins.
C) the amount of money in circulation.
D) the rate at which the Federal Reserve Board creates money.
C
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According to adaptive expectations theory, which of the following would be the result of expansionary monetary and fiscal policies?
A. The economy self-corrects to the natural rate of unemployment. B. There is a long-run trade off between inflation and unemployment. C. The inflation rate falls. D. These policies can succeed in reducing the unemployment rate.
Under average-cost pricing, an increase in the monopolist's production cost will:
A. decrease its profit because its profit per unit decreases. B. not affect its profit because the government adjusts the regulated price equal to the average cost. C. increase its profit because the monopolist can reduce the average cost at a greater output level. D. None of these