If the Fed pursues expansionary monetary policy then
A) the money supply will increase, interest rates will rise and GDP will rise.
B) the money supply will decrease, interest rates will fall and GDP will fall.
C) the money supply will decrease, interest rates will rise and GDP will fall.
D) the money supply will increase, interest rates will fall and GDP will rise.
D
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When the price of a good decreases,
A) supply increases. B) supply decreases. C) quantity supplied increases. D) quantity supplied decreases.
Suppose a Japanese investor purchases a dollar deposit that yields 5 percent interest at the end of a year. What will be the approximate return in terms of yen at maturity if the exchange rate moves from $1 = ¥100 to $1 = ¥105 during the year?
a. 1 percent b. 5 percent c. 10 percent d. 20 percent e. 0 percent
Which of the following is most important if a country is going to achieve and sustain rapid economic growth?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. If the representative firm in a monopolistic ally competitive industry has an optimal output where P< ATC, the industry will expand in the long run. 2. In the long run, typical firms that are monopolistic ally competitive earn economic profits. 3. Monopolistically competitive firms will achieve the most efficient allocation of society's resources because there are no significant barriers to entry into the industry. 4. Pure competition results in a lower price but identical output level compared to those in monopolistic competition. 5. Monopolistic competition provides the benefit of product variety but at the cost of productive inefficiency.