The theory of portfolio choice indicates that higher interest rates make money ________ desirable, and the demand for real money balances ________
A) less; falls
B) more; falls
C) less; rises
D) more; rises
A
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Reducing ________ unemployment may be beneficial for an economy, but reducing ________ unemployment to zero would definitely reduce the efficiency of the economy
A) structural and frictional; cyclical B) frictional and cyclical; structural C) the natural rate of; cyclical D) structural and cyclical; frictional
Natural oligopolies occur when
a. the government establishes a market with a few large producers b. the market output could be produced at a higher cost by several large firms rather than many small firms c. there are no barriers to entry d. the total market output could be produced at a lower cost by several large firms rather than many small firms e. one large firm can produce the total market output at a lower cost than several smaller firms could
In response to the demands of environmentalists, large sections of timberlands are put off limits to logging. What effect will this have on the aggregate supply curve?
a. Shift it outward. b. Shift it inward. c. Move the economy up along the curve. d. Move the economy down along the curve.
The appropriate fiscal policy stance depends, at least partly, on the
a. stance of trade policy. b. stance of monetary policy. c. party in power in Congress. d. party in power in the presidency.