Suppose that the government wants to increase income without changing the interest rate. How can they accomplish this?
a. Increase government spending and reduce the money supply.
b. Increase government spending and the money supply.
c. Increase taxes and the money supply.
d. Reduce government spending and increase the money supply.
B
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Which of the following statements is true in the context of the long run?
a. All the factors of production are fixed. b. No new firms enter the market. c. The producer can vary all the factors of production. d. The firms earn positive economic profit. e. Large firms tend to acquire market power.
Unanticipated increase in inflation transfers wealth from the borrower, who pays the pre-decided rate of interest to the lender
Indicate whether the statement is true or false
Firms in which type of market structure have the least incentive to advertise?
a. monopoly b. oligopoly c. monopolistic competition d. perfect competition e. all have an equal incentive
If a country has a high level of income, it likely has:
A. high levels of physical capital. B. a highly productive work force. C. widespread access to technology. D. All of these are true.