Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would:
A. fall by 50 percent.
B. rise by 50 percent.
C. increase by 100 percent.
D. decrease by 100 percent.
Answer: A
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
About 6% of annual total federal government expenditures goes toward paying interest on the federal debt
Indicate whether the statement is true or false
If a perfectly competitive firm finds that price is less than its ATC, then the firm
A) will raise its price to increase its economic profit. B) will lower its price to increase its economic profit. C) is making an economic profit. D) is incurring an economic loss. E) is making zero economic profit.
Which of the following is not characteristic of successful microfinance organizations:
a. close, continuous contact between borrower and lender b. teams of borrowers who put pressure on each other to repay on time c. relatively small loans for short-term projects d. numerous levels of approval required to ensure that loans are sound e. all of the above characterize successful microfinance organizations