In the intertemporal model with money, the optimal amount of money is
A) equal to total output.
B) equal to consumption and investment.
C) zero.
D) irrelevant as long as it is not zero.
D
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The above figure shows the market for 2 bedroom town homes in San Diego. If a rent ceiling is set at $1,000 per month, what is true?
A) The quantity of town homes demanded decreases to 100,000. B) Black market rents might be as high as $1,300 per month. C) The quantity of town homes supplied increases to 250,000. D) More town homes are rented after the rent ceiling that before. E) The quantity demanded of town homes is less than the quantity supplied.
Which of the following is a reason for the failure of development plans?
(a) unreliable data. (b) unanticipated economic disturbances. (c) lack of political will. (d) all of the above. (e) none of the above.
The use of "most-favored-customer" clauses is an example of
A) incenting members to maintain the cartel, because if they lower the price for one customer, they have to lower it for previous customers as well. B) incenting members to maintain the cartel, because if they raise the price for one customer, they have to raise it for previous customers as well. C) giving customers special perks for purchasing goods from members of the cartel. D) selling higher quality goods and services to favorite customers.
Which of the following is a monetary policy tool that is meant to reduce interest rates and stimulate the economy?
a) Easy money b) Tight money c) Restrictive monetary policy d) Contractionary monetary policy