Monetarists' preference for reduced-form models is based on their belief that
A) reverse causation is a problem.
B) structural models may understate money's effect on economic activity.
C) money supply changes are always endogenous.
D) monetary policy affects only investment spending.
B
Economics
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When the British pound rises in value relative to other currencies, then
A) goods imported into Britain rise in price. B) British exports rise in price. C) neither British exports nor imports rise in price. D) both British exports and imports rise in price.
Economics
A temporary decrease in government purchases 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
Economics