The money market reaches equilibrium when
a. money demand equals money supply.
b. bond prices reach zero.
c. the quantity of money demanded equals the quantity of money supplied.
d. interest rates reach zero.
e. the growth of the money supply equals the rate of growth of the budget deficit.
C
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In the long run, monopolistically competitive firms make zero economic profits because of government regulations
Indicate whether the statement is true or false
In an economy with money, as opposed to barter, people are more likely to specialize in the production of goods and services
Indicate whether the statement is true or false
Which of the following statements is correct regarding the imposition of a tax on gasoline? a. The incidence of the tax always falls on the buyer
b. The incidence of the tax depends upon the price elasticities of demand and supply. c. The incidence of the tax always falls on the sellers. d. The oil company will ultimately pay.
If the government owes $15.0 trillion and then borrows $900 billion more this year, this leads to
a. a debt of $900 billion and a deficit of $15.9 trillion. b. a debt of $15.9 trillion and a deficit of $900 billion. c. a debt of $14.1 trillion and a deficit of $900 billion. d. a debt of $15.0 trillion and a deficit of $14.1 trillion. e. a debt of $15.9 trillion and a deficit of zero.