Monetization of the deficit (or debt) means that
a. the government uses monetary policy to control the economy rather than fiscal policy.
b. inflation accounting corrects for price increases.
c. the Fed buys newly issued debt and increases the money supply.
d. the amount of money in circulation is equal to the size of the debt.
c
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What is the long-run effect on the demand curve of a monopolistically competitive firm when more firms enter the market?
A. Demand curve shifts to left. B. Demand curve remains the same. C. Demand curve shifts to right. D. Demand curve become flatter.
Suppose that the installation, operating, and maintenance costs of a large wind turbine is four times that of a small turbine and has four times the generating capacity. The wind power industry faces:
A. constant returns to scale. B. economies of scale. C. increasing marginal cost. D. diseconomies of scale.
"The optimal level of pollution is zero." Do you agree or disagree? Why?
What will be an ideal response?
Refer to the information provided in Table 25.3 below to answer the question(s) that follow.Table 25.3
Refer to Table 25.3. The required reserve ratio is
A. 50%. B. 25%. C. 20%. D. 10%.