In the ISLM framework, the impact of monetary policy on equilibrium income is less when
A) money demand = money supply.
B) money demand is infinitely elastic.
C) the interest rate is low.
D) the investment function has lower interest-sensitivity.
D
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? Output (units) 0 1 2 3 4 5 Total Revenue ($) 0 9 16 21 27 31 Total Cost ($) 10 12 15 19 26 35To maximize its profits, the firm described in Table 8-1 should produce ____ unit(s) of output.
A. 1 B. 2 C. 3 D. 4
When firms are able to increase the amount of physical capital available to workers, the
a. marginal product of labor will decrease. b. value of the marginal product of labor will decrease. c. value of the marginal product of labor will increase. d. final product price will increase.
As general business conditions deteriorate, all other factors constant:
A. bond prices will decrease. B. the supply of bonds will increase. C. the demand for bonds will decrease. D. bond yields will increase.
The nominal rate of interest is
A. CPI minus an inflationary premium. B. the real rate of interest minus the anticipated rate of inflation. C. PPI minus an inflationary premium. D. the market rate of interest expressed in today's dollars.