Monetary and price instability will
What will be an ideal response?
generate uncertainty, and encourage investors and businesses to move their activities to countries with a more stable monetary environment
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Refer to Scenario 9.1. The socially optimal outcome occurs when Sheb places ________ sheep on the commons and Monty places ________ sheep on the commons
A) 4; 4 B) 4; 5 C) 5; 4 D) 5; 5
If the demand for a good increases, it is likely that the demand for the factors of production used as inputs will:
A. increase. B. stay the same. C. decrease. D. None of these statements is true.
A demand curve that is drawn as a vertical line has a price elasticity of demand equal to:
A. 0. B. the quantity. C. 1. D. infinity.
Suppose Japan is currently running a current account surplus. The most effective way of eliminating this current account surplus would be to temporarily ________ government purchases and ________ the domestic money supply.
A. increase; increase B. increase; decrease C. decrease; decrease D. decrease; increase