The supply and demand for money intersect at the equilibrium real interest rate, while the supply and demand curves for loanable funds intersect at the equilibrium real interest rate
a. True
b. False
Indicate whether the statement is true or false
True
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According to adaptive expectations theory, expansionary monetary and fiscal policies to reduce the unemployment rate are
A) useless in the short run
B) useless in the long run
C) ineffective on the price level
D) none of the above
The statement "Unemployment should be below 6 percent" is
A) a positive statement. B) a normative statement. C) a prediction. D) an assumption.
The demand curve for a monopoly's product is
A) more inelastic than the market demand for the product. B) more elastic than the market demand for the product. C) undefined. D) the market demand for the product.
Foreign investment in the United States gives us
A. greater control over our economy. B. less control over our economy. C. neither greater control nor less control over our economy.