In a liquidity trap, monetary policy has ________ effect on aggregate spending because a change in the money supply has ________ effect on interest rates
A) no; no
B) no; a large
C) no; a small
D) a large; a large
A
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How does the textbook distinguish between coercion and persuasion? Coercion induces cooperation by
A) making only a majority better off, persuasion by making everyone better off. B) making nearly everyone better off, persuasion by making only a few people better off. C) threatening to reduce people's options, persuasion by promising to increase their options. D) using force, persuasion by using rational argument.
If sugar and Nutrasweet are substitutes, then we can be certain that a decrease in the price of sugar will lead to an increase in the consumption of:
A. Nutrasweet only. B. sugar and Nutrasweet. C. sugar only. D. None of the statements is correct.
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$8,000$9,000910,00012,000815,00018,000720,00027,000628,00037,000
Table 9.7 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If the two firms were to voluntarily trade pollution permits, how many permits would be swapped?
A. 1 B. 2 C. 3 D. 4
In goods market equilibrium in an open economy,
A. the desired amount of national saving must equal the desired amount of domestic investment plus the amount lent abroad. B. the desired amount of exports must equal the desired amount of imports. C. the desired amount of exports must equal the desired amount of imports less the amount lent abroad. D. the desired amount of national saving must equal the desired amount of domestic investment.