Under an assumption of monetary neutrality, a change in the nominal money supply has
A) no effect on the price level.
B) a less than proportionate effect on the price level.
C) a proportionate effect on the price level.
D) a more than proportionate effect on the price level.
C
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The International Monetary Fund (IMF) was created to achieve each of the following goals EXCEPT
A) to help finance economic development in poor countries. B) to lend funds to countries having difficulties meeting their international payment obligations. C) to encourage convertibility of member countries' currencies. D) to supervise exchange-rate practices of member countries.
According to the table shown, the firm's marginal costs:
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. are constant.
B. increase as output increases.
C. decrease until the 2nd unit, then increase.
D. increase until the 4th unit, then decrease.
The K-Nine dog food company is considering the purchase of additional canning equipment. They expect that adding the equipment will yield $200,000 at the end of the first year and $250,000 at the end of the second year and then nothing after that. At which of the following prices and interest rates would K-Nine buy the equipment?
a. $415,000 if the interest rate is 5% b. $419,000 if the interest rate is 4% c. K-Nine would buy the equipment in both cases. d. K-Nine would not buy the equipment in either case.
Suppose a fall in stock prices makes people feel poorer. The decrease in wealth would induce people to
a. decrease consumption, shown as a movement to the left along a given aggregate-demand curve. b. increase consumption, shown as a movement to the right along a given aggregate-demand curve. c. decrease consumption, shown by shifting the aggregate-demand curve to the left. d. increase consumption, shown by shifting the aggregate-demand curve to the right.