In Figure 13-3 above, suppose that the Fed maintains a fixed real money supply and that commodity demand is also fixed. The range of shifts in the LM curve, LM1 to LM2 can then only be explained by
A) changes in the velocity of money.
B) changes in the price level.
C) changes in the demand for money.
D) A and C.
D
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Which of the following decreases the demand for loanable funds and shifts the demand for loanable funds curve leftward?
A) The real interest rate rises. B) The economy experiences a recession. C) Wealth decreases. D) Technology that increases productivity is introduced. E) An economy experiences a rapid increase in population.
In a franchised network in which all managers are required to pay a percentage of their sales to pay for system-wide advertising, there ________ a free -rider problem and it is ________ likely that the system-wide quantity of advertising will be optimal.
A) is; less B) is not; more C) is not; less D) is; more
People who are more productive in market work
a. produce less for themselves b. spend more time engaged in nonmarket work c. work fewer hours in market work and enjoy more leisure d. are more likely to acquire skills and education through nonmarket work e. are attracted to market employment at lower wages
In a perfectly competitive industry, price is set by ___________ and ___________.
Fill in the blank(s) with the appropriate word(s).