Monetarists and classical economists think very much alike, certainly when compared to Keynesians. For example, they both assume that the
a. velocity of money is constant
b. changes in money supply changes GDP
c. economy operates at full employment
d. price level is constant
e. interest rate has no impact on investment
C
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Suppose you have $400 to invest at a nominal interest rate of 7 percent, and the investment's term to maturity is 1 year. If the inflation rate is 2 percent, then the real return on your investment is approximately
A) $8. B) $20. C) $28. D) $36.
The relationship between the MP and MC curves is
A) over the range where the MP curve has a negative slope, the MC curve also has a negative slope. B) over the range where the MC curve has a positive slope, the MP curve also has a positive slope. C) over the range where the MP curve has a positive slope, the MC curve has a negative slope. D) that the MP is not defined when the MC curve has a negative slope. E) There is no predictable relationshi
What are the four types of industry structures? Compare and contrast them with the number of firms in the industry, whether firms produce homogeneous or heterogeneous products, whether there are economic profits in long-run equilibrium, and how frequently the model appears in the real world.
What will be an ideal response?
If a unit excise tax is placed on a good for which the demand is very unresponsive to a price change, then
A) the government generally pays the majority of the tax. B) the consumers generally pay the majority of the tax. C) the producers generally pay the majority of the tax. D) producers and consumers pay equal portions of the tax.