Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the nation's:
a. Real risk-free interest rate will fall causing real GDP to rise.
b. Real risk-free interest rate will rise causing the monetary base, and therefore, the money supply to rise.
c. Real risk-free interest rate will remain unchanged, but the money multiplier will rise.
d. Real risk-free interest rate will rise but real GDP will remain the same.
e. Real risk-free interest rate will fall causing the money multiplier to rise.
.D
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The monopolist, unlike the perfectly competitive firm, can continue to earn an economic profit in the long run because of:
a. collusive agreements with competitors. b. price leadership. c. cartels. d. a dominant firm. e. extremely high barriers to entry.
Deadweight loss is the net loss to society when a monopolist restricts output and increases the price
Indicate whether the statement is true or false
In September, USDA estimates that for Corn, the Yield per Harvest Acre is likely to be higher than that predicted in the previous month. The change in estimate (all else equal) will:
a. Increase estimates of Production of Corn b. Increase estimates of Total Supply c. Decrease estimates of Ending Stocks d. a and b are correct e. a, b and c are correct
You have two savings accounts at an FDIC insured bank. You have $225,000 in one account and $40,000 in the other. If the bank fails, you will receive:
A. $115,000. B. $40,000. C. $250,000. D. $225,000.