The level of income is unchanged in response to anticipated anti-inflation policy in ________
A) real business cycle theory
B) traditional Keynesian theory
C) new Keynesian theory
D) post classical theory
A
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When voluntary exchange takes place, only one party gains from the exchange
Indicate whether the statement is true or false
Consider a car dealership that advertises a three-year lease at $250 per month. When you arrive to apply, you discover that the lease requires a down payment of $3600 dollars. You will undertake the lease if
A) you value the lease at least $350 per month. B) you value the lease at least $250 per month, the $3600 is a sunk cost. C) you value the lease less than $350 per month. D) you value buying a new car at $400 per month.
M2 is both larger and less liquid than M1
a. True b. False Indicate whether the statement is true or false
If purchasing-power parity holds, when a country's central bank increases the money supply, a unit of money
a. gains value both in terms of the domestic goods and services it can buy and in terms of the foreign currency it can buy. b. gains value in terms of the domestic goods and services it can buy, but loses value in terms of the foreign currency it can buy. c. loses value in terms of the domestic goods and services it can buy, but gains value in terms of the foreign currency it can buy. d. loses value both in terms of the domestic goods and services it can buy and in terms of the foreign currency it can buy.