According to the misperceptions theory, an anticipated decline in the money supply leads to a shift of the AD curve ________ and a shift of the SRAS curve ________.
A. up and to the right; upward
B. down and to the left; downward
C. up and to the right; downward
D. down and to the left; upward
Answer: B
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Today, central banks __________ intervene to influence floating exchange rates
A) never B) seldom C) frequently D) are required
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is
A. -2/3. B. -3/4. C. -1.5. D. -20.
A price floor in an agricultural market is called
A) an agricultural floor. B) a farm support. C) a price support. D) a farm subsidy. E) a farm support price.
A market transaction causes an externality if someone
a. directly involved in the transaction receives uncompensated benefits or costs from it. b. not directly involved in the transaction receives uncompensated benefits or costs from it. c. directly involved in the transaction seeks legal assistance to ensure that the transaction is carried out. d. not directly involved in the transaction interferes in it by imposing regulations or product standards.