The use of computers to speed up the banking system's processing of checks explains why monetarists believed that
a. output increases as the price level increases
b. the money supply affects output
c. the velocity of money has increased since the 1950s
d. the changes in money supply and changes in velocity are interdependent
e. fiscal policy can fine tune an economy
C
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Recall the Application. When applying the Taylor Rule to the decade of 2000, economist John Taylor found that compared to past experience, the Fed
A) raised interest rates much too high and much too quickly. B) should have maintained interest rates instead of raising them slowly. C) should have lowered interest rates at a much faster pace. D) was much too aggressive in lowering interest rates.
Political competition between candidates, especially attempts to paint one's opponent as being extreme, shows that _____
a. the way to be a successful politician is to fight dirty b. cyclical majorities will never exist c. there is an opportunity for third parties d. politicians implicitly accept the validity of the median voter model