The quantity theory of money implies that a given percentage change in the money supply will cause ?

The regarding the new classical macroeconomics is hoe realistic is the assumption ?

A. that monetary policy affects aggregates demand

B. that markets do not clear quickly

C. that fiscal policy affects aggregate demand

D. of rational expectations.

It is difficult to determine if the velocity of money is constant over time because ?

A. it is difficult to measure the value of nominal GDP over time

B. there has been very little fluctuation in the money supply over time.

C. it is difficult to measure the demand for money over time

D. whether velocity is constant or not may depend on how the money supply is measure.

People are said to have rational expectations if they ?

A. assume that this year’s inflation rate will be the same as last year’s inflation rate

B. merely guess at the inflation rate.

C. assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years

D. Use all available information in forming their expectations.

The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?

A. Rational-expectations hypothesis

B. Passive-expectations hypothesis

C. adaptive expectations hypothesis

D. lagged-expectations hypothesis.

The nation that the government can establish the macroeconomic is known as ?

A. fine tuning

B. monestarism

C. microeconomics foundations of macroeconomics

D. the classical model