An increase in the discount rate will lead to a decrease in the money supply
a. True
b. False
A
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Which of the following statements about third-degree price discrimination is correct?
A. Successful third-degree price discrimination will generally result in a greater level of output than would be the case under a single-price pure monopoly. B. Successful third-degree price discrimination does not require that different groups of consumers have different demand elasticities. C. Successful third-degree price discrimination does not require that the producer separates customers into easily identifiable groups. D. Successful third-degree price discrimination will not provide the firm with more total profits than if it does discriminate.
A decrease in income taxes can help growth and harm growth at the same time
a. True b. False
If there is inflation, then a firm that has kept its price fixed for some time will have a
a. high relative price. Relative-price variability rises as the inflation rate rises. b. high relative price. Relative-price variability falls as the inflation rate rises. c. low relative price. Relative-price variability rises as the inflation rate rises. d. low relative price. Relative-price variability falls as the inflation rate rises.
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.