When the price of a good decreases, the budget constraint does not change.
Answer the following statement true (T) or false (F)
False
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When the Fed decreases the money supply, interest rates:
a. rise. b. fall. c. are unaffected. d. rise and then fall. e. fall and then rise.
A positive aspect of monopolies is that they may aid innovation in the marketplace.
Answer the following statement true (T) or false (F)
Unexpected and large deflation is desirable, according to the Friedman rule
a. True b. False Indicate whether the statement is true or false
Inventory levels unexpectedly fall and as a result firms increase the quantity of goods and services they produce. Which of the following is consistent with these two occurrences?
A) TP is greater than TE. B) TP is less than TE. C) TE is equal to TP minus the rise in inventories above the optimum inventory level. D) TP is equal to TE. E) b and c