The open interest on calls __________ the open interest on puts
A) is always equal
B) is always larger
C) is always smaller
D) has no direct relationship with
D
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Which of the following explains why the AD curve is downward sloping?
a. a lower price level forces the government to reduce taxes, shifting the IS curve to the right and increasing income. b. A lower price level forces the central bank to increase the money supply, shifting the LM curve to the right and increasing income. c. A lower price level increases real money balances, shifting the LM curve to the right and increasing income. d. none of the above are correct.
The substitution effect of a wage increase: a. results in an increase in the quantity of labor supplied. b. results in a decrease in the quantity of labor supplied. c. has no impact on the quantity of labor supplied
d. results in an increase in the quantity of leisure enjoyed.
The opportunity cost of a decision is the value of all of the available alternatives that were not chosen
a. True b. False Indicate whether the statement is true or false
Those who prefer that the Fed react to negative supply shocks by tolerating higher rates of inflation as a means of moderating a recession are called
a. inflation doves b. inflation hawks c. monetarists d. Keynesians e. hard headed and soft hearted