An increase in inflationary expectations shifts the economy's short run Phillips curve to the left.
Answer the following statement true (T) or false (F)
False
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Which of the following statements about financial markets and securities is TRUE?
A) Many common stocks are traded over-the-counter, although the largest corporations usually have their shares traded at organized stock exchanges such as the New York Stock Exchange. B) As a corporation gets a share of the broker's commission, a corporation acquires new funds whenever its securities are sold. C) Capital market securities are usually more widely traded than shorter-term securities and so tend to be more liquid. D) Prices of capital market securities are usually more stable than prices of money market securities, and so are often used to hold temporary surplus funds of corporations.
Mutual interdependence means that each firm in an oligopolistic industry:
A. considers the reactions of its rivals when it determines its price policy. B. makes a product identical to those produced by its rivals. C. faces a perfectly inelastic demand for its product. D. makes a product similar but not identical to those produced by its rivals.
When quantity demanded is greater than quantity supplied, the resulting shortage causes the price to fall.
Answer the following statement true (T) or false (F)
According to monetarists, a change in the money supply changes:
A. the velocity of money, which in turn changes the nominal GDP. B. investment spending, which in turn changes the nominal GDP. C. the interest rate, which in turn changes the nominal GDP. D. aggregate demand, which in turn changes the nominal GDP.