A price may be sticky because

A) of monetary policy.
B) of menu costs.
C) of total factor productivity shocks.
D) of the monetary illusion.


B

Economics

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Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium

a. The quantity of real loanable funds per time period rises and GDP Price Index rises. b. The quantity of real loanable funds per time period falls and GDP Price Index falls. c. The quantity of real loanable funds per time period rises and GDP Price Index falls. d. The quantity of real loanable funds per time period and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.

Economics

Two characteristics of a modern economy are

A. barter and self-sufficiency. B. specialization and exchange. C. a low standard of living a high poverty rate. D. self-sufficient workers and very little international trade.

Economics

The rate at which the federal government matches state Medicaid expenditures is

A. uniform across the U.S. B. dependent on the state's income and patient load. C. dependent on the state's income. D. dependent on the state's patient load.

Economics

Edt = - 5. This means that if

A. Pt increases by 5 percent, then Qdt will decrease by 1 percent. B. Pt increases by 1 percent, Qdt will decrease by 5 percent. C. Pt decreases by $1, Qdt will decrease by 5 units. D. Qdt increases by 5 percent, Pt will decrease by 1 percent.

Economics