If participants in securities markets believe that an announced decrease in the money supply will reduce the rate of inflation, the likely result will be
A) higher real interest rates.
B) higher nominal interest rates.
C) lower real interest rates.
D) lower nominal interest rates.
D
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In a closed economy, if Y is 10,000, T is 1,000, G is 3,000, and C is 5,000, then
a. the government has a budget surplus and investment is 1,000 b. the government has a budget surplus and investment is 2,000 c. the government has a budget deficit and investment is 1,000 d. the government has a budget deficit and investment is 2,000
Suppose a country's government is deciding whether or not to impose an import quota to protect the domestic automobile industry. Will the domestic steel-producing firms be in favor of a quota designed to protect the local automobile producers? Why or why not?
What will be an ideal response?
Suppose a monopolist faces the constant price elasticity demand curve:
p = Q? where ? < 0. The monopolist has a constant marginal cost of c. a. If ? < -1, can you determine what price and quantity will the monopolist set? Explain. b. If 0 > ? > -1, what is the price and quantity the monopolist will set?
Sam has $200 a month to spend on either tanning sessions or rounds of golf. Tanning sessions are $20 each, and a round of golf is $40. What can we say about Sam's utility?
A. Sam will get more utility from each round of golf than each tanning session. B. Sam will get the same utility from one round of golf as he would from two tanning sessions. C. Sam will maximize his utility from 2 rounds of golf and 6 tanning sessions. D. We cannot say anything about Sam's utility from the consumption of these goods without more information.