Which of the following statements is true?
A. Keynesians believe that consumers are inherently unstable in consumption decisions, but that businesses are relatively stable in making investment decisions.
B. Monetarists believe in discretionary monetary policy.
C. Lowering tax rates is the main priority of Supply Side economists.
D. Rational expectationists argue that businesses have a poor record of anticipating government fiscal policy.
C. Lowering tax rates is the main priority of Supply Side economists.
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Financial markets pay close attention to changes in the federal funds rate because these changes ________.
A. indicate commercial bank lending policies B. indicate the Fed's plans for monetary policy C. directly affect the interest payments on the national debt D. directly affect a large volume of loans
Because of the recognition internationally of the principles of national sovereignty, nations cannot be affected by the policies of other nations and international governmental organizations
Indicate whether the statement is true or false
Monopolies do not last in the long-run
Indicate whether the statement is true or false
A firm operating in a perfectly competitive industry will shut down in the short run but earn losses if the market price is less than that firm's average variable cost
a. True b. False Indicate whether the statement is true or false