The price of a specific good in comparison to the prices of other goods and services is called:
A. the price level.
B. a real price.
C. a relative price.
D. inflation.
Answer: C
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If the demand curve for money were horizontal at some interest rate, an increase in the money supply
A) would lower the interest rate. B) would increase the rate of inflation. C) would be highly effective in reducing inflation. D) would not change the interest rate
When total revenue minus total cost is equal to zero, the firm is:
A. earning above-average economic profit. B. earning a normal profit. C. losing too much money to stay in business. D. earning abnormally low profits.
If no foreign residents owned any of the U.S. public debt, then it would be true that
A) U.S. residents would essentially owe the public debt to themselves. B) there would be no distributional consequences associates with he public debt. C) there would be no interest payments on the public debt. D) the public debt would naturally disappear over time.