When a market operates so that there are no shortages and no surpluses, then the market is
A. free.
B. in equilibrium.
C. in disequilibrium.
D. subject to non-market intervention.
B. in equilibrium.
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Which of the following is true?
a. Monetary policy influences long-term real interest rates more than short-term interest rates. b. Short-term interest rates are primarily determined by real factors and the expected inflation. c. A shift to a more expansionary monetary policy will tend to reduce short-term interest rates. d. A shift to a more expansionary monetary policy will tend to reduce the expected rate of inflation in the future.
An example of a public good is
A. a concert by renowned country music star. B. a good that can be used exclusively by one consumer only. C. a local free fireworks display. D. a café latte at Starbucks.
Refer to the accompanying figure. If the price of this good is initially $3, and price falls by a few cents, then what will happen to total expenditure on this good?
A. Total expenditure will rise. B. Total expenditure will fall to 0. C. Total expenditure will not change. D. Total expenditure will fall.
Mugabe's new money:
A. didn't increase inflation rates in Zimbabwe. B. caused Zimbabwe's deflation to get even worse. C. helped pull Zimbabwe out of its recession. D. didn't increase productivity in Zimbabwe.