According to the monetarists, government intervention can stabilize the economy and minimize the effect of business cycles
a. True
b. False
Indicate whether the statement is true or false
False
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One of the benefits of money as a medium of exchange is that
A) it allows individuals to compare the relative value of goods. B) it allows for specialization that leads to economic efficiencies. C) over time it will become more valuable so that individuals can purchase more goods and services. D) it allows for private transactions such as trading vegetables for medical services.
As the economy enters a strong expansion, then firms' demand for loanable funds
A) increases because the nominal interest rate rises. B) increases because expected profit increases. C) decreases because expected profit decreases. D) decreases because the nominal interest rate falls. E) increases because the real interest rate rises.
An increase in the value of a country's currency is known as ________
A) a spot exchange rate B) a depreciation of its value C) an appreciation of its value D) a backward exchange rate
Which of the following characterizes an oligopolistic industry?
a. mutual interdependence b. low barriers to entry c. small output of individual firms relative to the total market d. a large number of competing firms