If money demand does not depend on the interest rate then
a. the LM curve if vertical and fiscal policy is ineffective.
b. the LM curve is horizontal and fiscal policy is ineffective.
c. the LM curve is horizontal and horizontal has no effect on output.
d. the LM curve is vertical and monetary policy is ineffective.
A
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________ dictates the lowest wage that firms may pay for labor
A) The black-market wage B) A maximum wage requirement C) A minimum wage law D) A price-ceiling wage
When the actual reserve/deposit ratio exceeds the desired reserve/deposit ratio banks:
A. stop making loans. B. make more loans. C. do nothing because this is a profitable situation. D. send the extra reserves to the central bank.
Discuss the evidence on whether economic growth is bad for the environment
What will be an ideal response?
Cost-of-service-regulation sets prices by considering
A. the actual total cost of providing the service to the customer. B. the actual marginal cost of providing the service to the customer. C. the actual average cost of providing the service to the customer. D. the actual variable cost of providing the service to the customer.