According to the short-run Phillips curve, the unemployment rate and the inflation rate are
A) negatively related. B) unrelated.
C) positively related. D) unaffected by monetary policy.
A
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If the Fed’s monetary policy causes a substantial decrease in interest rates, what is the most likely impact on velocity?
A. Velocity will decrease. B. Velocity will increase. C. Velocity will remain constant. D. Velocity is unrelated to interest rates.
When marginal cost is falling
A. marginal product is at a maximum. B. marginal product must be falling. C. marginal product is at a minimum. D. marginal product must be rising.
Import tariffs generally result in
A) higher domestic prices. B) less consumer surplus. C) more producer surplus for domestic producers. D) a deadweight loss. E) all of the above
Which of the following would lead to a rightward shift of the money demand curve?
a. Expectations that the interest rate will fall b. New substitutes for money become popular c. The use of electronic money increases d. Substitutes for money become less popular e. The use of credit cards increases