In a recession, monetarists believe
A. Interest rates rise to eliminate the recession.
B. Velocity varies in response to fiscal policy.
C. Marginal tax rates will automatically decrease.
D. Fiscal policy is ineffective.
Answer: D
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If the average price of a car suddenly changes from $20,000 to $15,000, larger, more remote stores with lower prices are ________ to have a(n) ________ in the number of customers.
A) likely; increase B) not likely; change C) not likely; increase D) likely; decrease
The demand curve faced by the monopolist
A) has a constant price elasticity. B) is the industry demand curve. C) is identical to the firm's MR curve. D) is identical to the firm's TR curve.
You are given three options. You may have the balance in an account that has been collecting 5 percent interest for 20 years, the balance in an account that has been collecting 10 percent interest for 10 years, or the balance in an account that has been collecting 20 percent interest for five years. Each account had the same original balance. Which account now has the lowest balance?
a. the first one b. the second one c. the third one d. They all have the same balance.
If Utopia has a closed economy, the number of cases of tile consumed each is ________ per year, and if it has an open economy the number of cases of tile consumed is ________ per year.
A. 300; 450 B. 300; 200 C. 200; 450 D. 450; 200