Tight monetary policy raises the real interest rate, which ________ the demand for dollars, ________ the supply of dollars, and ________ the equilibrium value of the dollar.
A. decreases; decreases; decreases
B. increases; increases; increases
C. decreases; increases; increases
D. increases; decreases; increases
Answer: D
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The dollar value of the maximum amount one can consume over a given period without reducing the value of one's wealth is the _____
a. definition of income used to approximate in-kind benefits b. Fisher definition of income c. Laffer definition of income d. Haig-Simons definition of income
Which one is a macroeconomic topic?
a. A business decides to buy new software. b. A person decides to return to college. c. The central bank lowers interest rates to stimulate the economy. d. The government issues new environmental regulations.
Which of the following would reduce the supply of baseball hats?
a. An increase in the demand for baseball hats.
b. A new tax imposed on the producers of baseball hats.
c. A reduction in the price of cloth used to make baseball hats.
d. All of the above.
The profit-maximizing combination of resources in a perfectly competitive situation occurs at the point at which
A. MRP of labor = price of labor (wage rate). B. MRP of capital = price of capital (cost per unit of service). C. MRP of land = price of land (rental rate per unit). D. All of these are correct.