If business fluctuations are from demand-side forces,
A. monetary and fiscal policy will move inversely.
B. interest rates and budget deficits will move inversely.
C. unemployment and inflation will move inversely.
D. unemployment and budget deficits will move inversely.
Answer: C
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If Veronica withdraws $1,500 from her savings account and deposits it in her checking account, then M1 will ________ and M2 will ________
A) increase; decrease B) increase; not change C) not change; decrease D) not change; not change
In today's world, many countries impose tariffs
A) only on imports. B) only on exports. C) on both imports and exports. D) on imports, exports, and nontraded goods.
Assume the production of a particular good is characterized by significant economies of scale. In addition, three different versions of the good can be produced, and large segments of the population prefer different versions of the good
In this case, the preferred market structure for this good would be: A) perfect competition. B) monopoly. C) monopolistic competition. D) oligopoly.
At an interest rate of 3%, what is the present value of $1000 to be received five years from now?
A) $863 B) $1,667 C) $1,159 D) $850