Based on the model of the money market, if prices in the economy decrease, the equilibrium interest rate should
A) stay the same.
B) increase.
C) decrease.
D) increase to the same extent that the supply of money increases.
C
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If 25 workers can pick 100 flats of strawberries per hour, then average product is
A) 100 flats per hour. B) 125 flats per hour. C) 75 flats per hour. D) 4 flats per hour. E) More information is needed about how many flats 24 workers can pick.
Which group has the highest poverty rate?
A. Non-Hispanic whites B. Blacks C. Hispanics
The theory of liquidity preference assumes that the nominal supply of money is determined by the
a. level of real output only. b. interest rate only. c. level of real output and by the interest rate. d. Federal Reserve.
What is one reason private solutions to externalities do NOT always work?
a) Government participation in such solutions complicates the process. b) Some parties benefit from externalities. c) Interested parties incur costs in the bargaining process. d) The actual costs and benefits of the problem are difficult to see.