Under the adaptive expectations hypothesis, which of the following is the most likely long-run effect of a move to a more expansionary monetary policy?
a. higher prices and no change in real output
b. higher prices and expansion in real output
c. no change in prices but an expansion in real output
d. no change in either prices or real output
A
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A linear total cost curve which passes through the origin implies that
a. average cost is constant and marginal cost is variable. b. average cost is variable and marginal cost is constant. c. average and marginal costs are constant and equal. d. need more information to answer question.
The maximum possible profit that could be earned by a cartel is: a. greater than the monopoly profit
b. equal to the monopoly profit. c. less than the monopoly profit. d. unrelated to the level of monopoly profit.
Ward Planter exclusively grew soybeans in each of the past three years and currently participates in the marketing loan program of the Food, Conservation, and Energy Act of 2008. If the "crop price" of soybeans at harvest is less than the pre-harvest
"loan price," Planter can: A. sell his crop in the market and receive the difference between the crop price and loan price as a direct payment from the federal government. B. take a "crop credit" based on the difference between the crop price and the loan price and use the credit to reduce federal income taxes owed. C. receive an "emergency loan" that can be paid back over the following five years. D. forfeit the harvest to the lender and be free of the loan, thus receiving a subsidy because the proceeds from the loan exceed the revenues from the sale of the crop in the market.
Deposits held by Federal Reserve district banks for depository institutions, plus depository institutions' vault cash are known as
A. the discount rate. B. adverse selection. C. reserves. D. a sweep account.