In a graph, a straight line has a negative slope if the line
A) is vertical.
B) is horizontal.
C) falls from left to right.
D) rises from left to right.
E) shows a trend.
C
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Monetary policy has a greater impact in an open economy than it does in a closed economy
Indicate whether the statement is true or false
If the marginal utility of a product exceeds its MC, we would want, on efficiency grounds, to
a. increase production. b. decrease production. c. leave production constant. d. One cannot tell without knowing the price.
Statistical analysis reveals that the long-run money velocity (for euro-area M3, which is equivalent to U.S. M2):
A. is much more stable in the U.S. than in the euro area. B. is unstable in the euro similar to the instability that exists in the U.S. C. has increased in the euro area since 1980. D. is more stable in the euro area than in the U.S.
Suppose the Federal Reserve announces that it will be making a change to a key interest rate to decrease the money supply. This is likely because the Federal Reserve is
a. worried about inflation. b. worried about unemployment. c. hoping to increase the demand for goods and services. d. worried that the economy is growing too slowly.