A. bad money drives out good
B. monetary policy can only be effective if it is a long-term policy
C. controlling one part of the money supply will merely result in that item becoming less important
D. the money supply must only expand at the rate of growth of real national income
Related Mcqs:
- A major dependency theorist Andre Gunder Frank Suggests that the following economic activities have contributed to underdevelopment:
I- Workers migrating from villages to foreign-dominated urban complexes
II- Forming an unskilled labor force to work in factories and mines and on plantations
III- Replacing indigenous enterprises with technologically more advanced global subsidiary companies
IV- Closing the economy to trade with and investment from, developed countriesA. I and II only
B. II and III only
C. I, II and III only
D. I , II III and IV - The Harrod Domar growth model suggests that growth is ?
A. directly related to savings and inversely related to the capital/output ratio
B. directly related to the capital/output ratio and inversely related to savings
C. indirectly related to savings and the capital/output ratio
D. directly related to savings and the capital/output ratio - Referring to the above table, the U.S balance of international indebtedness suggests that the U.S is a net ?
A. debtor
B. creditor
C. spender
D. exporter - Adam smith’s invisible hand concept suggests that a competitive market outcome ?
A. maximizes total surplus
B. generates equality among the members of society
C. minimizes total surplus
D. both maximizes total surplus and generates equality among the members of society - The rational-expectation hypothesis suggests that the forecasts that people make concerning future inflation rates ?
A. consistently overestimate the actual rate of inflation in the future.
B. are always correct
C. consistently underestimate the actual rate of inflation in the future
D. are correct on average, but are subject to errors that are distributed randomly - The Club of Rome Study, The Limits to Growth suggests that as natural resources diminish ?
A. capital increasingly replaces labor
B. technological change compensates for capital depletion
C. costs rise, leaving less capital for future investment
D. contingent valuation becomes critical - perfect international capital mobility suggests that international funds will be responsive to ________ differentials?
A. current account
B. interest rate
C. tax
D. price - Real business cycle theory suggests that ____ not important in explaining short-term fluctuations around actual output ?
A. aggregate supply is
B. aggregate demand is
C. potential output is
D. real variables are - The idea that suggests that poverty is self-perpetuating because poor nations are unable to save and invest enough to accumulate the capital stock that would help them grow is ?
A. the vicious circle of poverty hypothesis
B. the dependency theory
C. neo-colonialism
D. the under-consumptionist hypothesis - Evidence suggests that the price elasticity of demand for motoring is ?
A. absolutely inelastic
B. Unitarily elastic
C. Elastic
D. inelastic
