All else held constant, as additional firms enter an industry
A. less output is available at each given price.
B. more output is available at each given price.
C. the same output is available at each given price.
D. output could increase or decrease at each given price.
Answer: B
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According to the Application, economist John B. Taylor found that the temporary tax cuts which were a part of the 2009 stimulus package
A) were primarily used to pay off home mortgage balances. B) were split very evenly between consumption spending and household saving. C) were very successful in stimulating consumption spending. D) did very little to stimulate consumption spending.
If a savings and loan "pools risk," which of the following must it do?
A) take funds in from a large number of lenders B) have a large spread between the interest rate it charges borrowers and the interest rate it pays lenders C) lend money to a large number of firms D) Both answers A and C are correct.
The quantity theory of money predicts that in the ________, a 10 percent increase in the quantity of money leads to a 10 percent increase in ________
A) long run; real GDP B) short run; velocity C) long run; velocity D) long run; price level
Which statement is true of an exogenous variable in an economic model?
A) It has no direct relation to the endogenous variables. B) Its value within the model cannot be changed. C) It is often a policy variable. D) It is explained inside the model. E) All of the above.