In which case would the quantity of money demanded by the public tend to increase by the greatest amount?
A. The interest rate increases and nominal GDP increases
B. The interest rate increases and nominal GDP decreases
C. The interest rate decreases and nominal GDP decreases
D. The interest rate decreases and nominal GDP increases
D. The interest rate decreases and nominal GDP increases
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GDP per capita is:
A. negatively correlated with quality of life. B. highly correlated with quality of life. C. loosely correlated with quality of life. D. perfectly correlated with quality of life.
Which is a feature of a purely competitive market?
A. There are significant barriers to entry into the industry. B. There are price differences between firms producing the same product. C. The industry's demand curve is perfectly elastic. D. Products are standardized or homogeneous.
Refer to Figure 11-10. Suppose for the past 8 years the firm has been producing Qd units per period using plant size ATC4. Now, following a permanent change in demand, it plans to cut production to Qc units
What will happen to its average cost of production? A) In the short run, its average cost rises from $47 to $55, and in the long run, average cost falls to $41. B) In the short run, its average cost rises from $47 to $55, and in the long run, average cost falls to $37. C) In the short run, its average cost falls from $47 to $37, and in the long run, average cost rises to $41. D) In the short run, its average cost falls from $47 to $41, and in the long run, average cost falls even further to $37.
The money supply is certain to increase if the Treasury finances expenditures by borrowing from the
A) Federal Reserve. B) banking system. C) non-bank financial system. D) general public.