A decrease in ________ leads to an equal ________ in the monetary base in the short run
A) float; increase
B) float; decrease
C) Treasury deposits at the Fed; decrease
D) discount loans; increase
B
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Suppose the economy is experiencing a recessionary gap. In the long run, if aggregate demand does not change, the following events happen: the money wage rate ________, unemployment ________, and the price level ________
A) falls; rises; falls B) falls; falls; falls C) rises; rises; rises D) rises; falls; rises
Marginal revenue is the addition to total revenue resulting from the addition of one unit to total output.
Answer the following statement true (T) or false (F)
What is a location rent? Give an example of a location rent
During the Financial Crisis of 2007-2008, investors demanded much higher risk premiums in their investments. This caused the SML to:
A. Shift up B. Shift down C. Become steeper D. Become flatter