If the money market is in the liquidity trap, then people
A) do not want to hold money because its value is at its lowest.
B) want to hold bonds because the interest rate is quite high.
C) do not want to hold bonds because their price is likely to decrease.
D) want to hold bonds because their price is high.
E) a, b and d
C
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The slope of a producer's production possibilities frontier represents the producer's
A) sunk costs of production. B) average costs of production. C) marginal costs of production. D) total costs of production.
Refer to Figure 16-3. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?
A) a decrease in interest rates B) an increase in the money supply C) a decrease in income taxes D) a decrease in government purchases
The aggregate supply curve is the total quantity of
A) raw materials offered for sale at different inflation rates. B) final goods and services offered for sale at the current inflation rate. C) final goods and services offered for sale at different inflation rates. D) intermediate and final goods and service offered for sale at different inflation rates.
Germany placed a limit on the amount of beer that can be imported into Germany. This is an example of
A. a tariff. B. dumping. C. a quota. D. an export subsidy.