The change in the purchasing power of dollar-denominated assets (such as cash holdings) is the
A) money effect.
B) interest rate effect.
C) asset effect.
D) real balance effect.
E) none of the above
D
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The demand for DVDs increases. As a result
A) the wage rate in the DVD industry increases and the quantity demanded of workers increases. B) the wage rate in the DVD industry increases and the quantity supplied of workers increases. C) the demand for labor increases and the supply of labor also increases, leaving wages unchanged. D) the demand for labor increases, but since the supply curve of labor is perfectly elastic, the wage rate does not change.
Jordan and Jennifer are musicians in New Orleans. Ezra is a musician thinking about moving to New Orleans. Which of the following statements is correct?
a. The wage needed to keep Jordan and Jennifer in the New Orleans music industry in the long run will be lower than the wage needed to keep them in the industry in the short run. b. The costs of entering the New Orleans music industry are sunk costs for Jordan, Jennifer, and Ezra. c. The costs of entering the New Orleans music industry are sunk costs for Ezra but not for Jordan and Jennifer. d. The wage needed to induce Ezra to enter the New Orleans music industry will be lower than the wage needed to keep him in the industry after he enters. e. The costs of entering the music industry in New Orleans are sunk costs for Jordan and Jennifer, but not for Ezra.
When a country operates with a currency board, the central bank's sole objective is to:
A. maintain the exchange rate. B. maintain the domestic interest rate. C. maintain the target inflation rate. D. focus on domestic monetary policy.
Which of the following represents the effects in period t of an increase in the saving rate in period t?
A) no change in K/N B) no change in Y/N C) a reduction in C/N D) all of the above