In the short run, a price increase in the goods and services market will
a. increase the purchasing power of money.
b. improve producer profits and, thereby, induce suppliers to expand output.
c. increase resource prices, lower profits, and lead to a decline in output.
d. reduce the natural rate of unemployment.
B
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When a price is presented in context to another, a firm is
A) discriminating. B) maximizing profits. C) marking up. D) framing.
When a group of nations adhere to a strict fixed exchange rate system, then
a. no country will experience inflation or recession. b. each nation loses some control of its monetary policy and its domestic economy. c. each nation is able to exercise more control of its fiscal policy and aggregate demand. d. each nation is able to exercise more control of its monetary policy and its domestic economy.
The Law of Supply insures that supply curves slope upward
Indicate whether the statement is true or false
Barry was a mortgage originator from 2002 to 2007. He often had clients who had limited financial assets, but he nevertheless encouraged them to take out large mortgages he felt they probably could not afford. Briefly explain why Barry would have been motivated to make such financial transactions.
What will be an ideal response?