In the futures market, the difference between the price of the futures and the underlying asset is eliminated by
A) speculators.
B) hedgers.
C) arbitrageurs.
D) longs.
C
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A decline in money supply will lead to a(n) ________ if nominal wages are rigid
A) increase in labor demand B) fall in real wages C) fall in labor demand D) increase in real output
For a monopoly, marginal revenue is equal to
A) the amount people buy at a given price. B) the amount people buy between two prices. C) the change in total revenue brought about by a one-unit increase in quantity sold. D) the price multiplied by the quantity sold. E) the price of the product.
If the relationship between the monetary aggregate and the goal variable is weak, then
A) monetary aggregate targeting is superior to exchange-rate targeting. B) monetary aggregate targeting is superior to inflation targeting. C) inflation targeting is superior to exchange-rate targeting. D) monetary aggregate targeting will not work.
If a profit-maximizing firm hires an additional unit of labor, what must be true about labor's wage and marginal revenue product?
a. Its wage always equals its marginal revenue product. b. Its wage is always greater than its marginal revenue product. c. Its wage is always total revenue minus marginal revenue product. d. Its wage is always less than or equal to its marginal revenue product.