If the ________ curve is relatively more unstable than the ________ curve, an interest rate target is preferred
A) IS; IS
B) IS; LM
C) LM; IS
D) LM; LM
C
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A central bank with a hierarchical mandate will seek ________ as a condition of pursuing other goals
A) stable inflation B) high employment C) moderate interest rates D) the approval of the legislature E) none of the above
Answer the following statements true (T) or false (F)
1) If a firm purchases an input that is jointly produced with another good, changes in the demand for the other good will have no effect on the price of the input. 2) It is profit-maximizing for managers to locate their stores close together in areas that are frequented by low-income consumers. 3) Stores that are located in areas that offer a low transaction cost to consumers are more likely to be able to charge higher prices than stored located in areas with high transaction costs. 4) To maximize profit, a manager of a large chain of stores that are located throughout the United States needs to determine the average value of their consumers' time and transportation costs and locate each store in areas based on the average value. 5) A consumer's total transportation costs do not include the time the consumer spends in the store.
The median-voter theorem would suggest the reason politicians go from extreme to moderate positions on an issue over the course of an election is because they are appealing to the:
A. average voter in their party in the primary, and the average of all voters in the general election. B. majority of voters in their party in the primary, and the majority of all voters in the general election. C. median voter in their party in the primary, and the median of all voters in the general election. D. people in their party and opposing party.
A change in the price of one good results in a rotation of the budget line, so that it is steeper or flatter
a. True b. False Indicate whether the statement is true or false