What could cause a decrease in the price level and simultaneously an increase in GDP similar to the 1920s in the United States?
A) a decrease in interest rates B) an increase in interest rates
C) a decrease in consumer confidence D) an increase in productivity
D
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It is a "given" that an individual firm selling in a perfectly competitive market will take the market price because
A. there are no good substitutes for the firm's product. B. product differentiation is reinforced by extensive advertising. C. the firm's demand curve is downward-sloping. D. each producer supplies a negligible fraction of total market.
The problem with spinning is that it may ________ the cost of capital to a firm and thus ________ the efficiency of the capital market
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Paper money in the United States is in the form of
a. treasury notes b. Federal Reserve notes c. silver certificates backed by silver d. gold certificates backed by gold e. U.S. bank notes
The task of deciding which consumer gets each of the goods produced in a free-market economy is solved by
a. the price system. b. the industries which produce the goods. c. the central planners. d. citizens with political power.