Suppose there is a decrease in the short-term interest rate. Give this reduction in the current short-term interest rate, which of the following will most likely occur?
A) The long-term interest rate will increase.
B) The long-term interest rate will remain the same.
C) The long-term interest rate will decrease by more than the short-term rate.
D) The long-term interest rate will decrease by the same amount as the short-term rate.
E) The long-term interest rate will decrease, but by less than the short-term rate.
E
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The duration of the "short-run"
A) is one year. B) is the same for all goods. C) depends on the relative short-run elasticity of demand and supply for the good. D) depends on how long it takes consumers or firms to adjust for a particular good.
The demand for good X is given by QX = 4,000 - PX - 2PY + 4PZ + 0.2M, where PY is the price of good Y, PZ is the price of good Z, and M is income. If PY = $800, PZ = $200 and M = $5000, what is the inverse demand function for good X?
A. PX = 4,200 - QX. B. PX = 4,600 - 2QX. C. PX = 3,200 - QX. D. PX = 1,200 - 2QX.
Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.Table 19.3Michael's Utility ScheduleUnits of ColaTU of ColaMU of ColaUnits of PretzelsTU of PretzelsMU of Pretzels14040130302 322 2039624366164112 478 5124 584 The marginal utility per dollar of the third pretzel is
A. 6. B. 12. C. 4. D. 5.
What was the purpose of the Celler-Kefauver Act of 1950?
What will be an ideal response?