The demand for money curve is shown in the figure above. A movement from point B to point C could be the result of
A) a rise in the real interest rate.
B) an increase in the quantity of money held by banks.
C) a fall in the nominal interest rate.
D) a rise in the real interest rate matched by an equal fall in the nominal interest rate.
E) a decrease in the total benefit from holding money.
C
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If the market price faced by a perfectly competitive firm increases, in the short run how does the firm respond?
What will be an ideal response?
Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon is
A) clearly inconsistent with the efficient markets hypothesis. B) consistent with the efficient markets hypothesis if the earnings were not as high as anticipated. C) consistent with the efficient markets hypothesis if the earnings were not as low as anticipated. D) consistent with the efficient markets hypothesis if the favorable earnings were expected.
Mario's Pizza and Bella's Pizza are in tacit collusion to cooperate and each charge a high price for their pizzas. If Mario's Pizza initially cooperates with Bella's Pizza, but then switches and charges a low price and Bella's Pizza responds by forever charging a low price, this is an example of ________.
A) a trigger strategy B) a tit-for-tat strategy C) a one -shot game D) an end-period problem
Which of the following is an example of a public good?
A) a movie ticket B) a cup of coffee C) books at a public library D) a railroad sign