The opportunity cost of holding money is properly measured by the rate of interest on financial assets such as bonds
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose an economy experiences a permanent increase in its natural unemployment rate. This change leads to
A) a downward movement along the short-run Phillips curve. B) a leftward shift of the short-run Phillips curve. C) a rightward shift of the short-run Phillips curve. D) an upward movement along the short-run Phillips curve. E) no change in the short-run Phillips curve.
Assume a competitive market has firms earning large economic profits. What is expected to happen over time in this competitive market and to firm's profits?
International capital flows strengthen
A. monetary policy and have no effect on fiscal policy. B. monetary policy but weaken fiscal policy. C. monetary and fiscal policy. D. fiscal policy but weaken monetary policy.
In the early ________, computers became powerful enough to have a real economic impact.
A. 1970s B. 1990s C. 1980s D. 2000s