The classical economists' contention that prices double when the money supply doubles is predicated on the belief that in the short run velocity is ________ and real GDP is ________
A) constant; constant
B) constant; variable
C) variable; variable
D) variable; constant
A
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Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. What is the amount of the deadweight loss?
A. $8,888.89 B. $2,222.22 C. $1,333,33 D. $4,444.44
In the complete algebraic formulation of ISLM,
A) the government spending multiplier is greater than the tax mulitplier as long as b <1. B) the government spending mulitplier is less than the tax multiplier as long as b<1. C) monetary policy is always more powerful than fiscal policy. D) fiscal policy is always more powerful than monetary policy.
Today's railroads are:
(a) Privately owned and regulated by competitive forces. (b) Private owned but managed by federal regulatory bodies. (c) Federally owned and managed by government regulatory bodies. (d) Federally owned but competitive.
The rate of return in loanable funds describes the:
A. expected profit that a project will generate per dollar invested. B. cost of borrowing. C. interest rate on loans. D. the profit firms should make when investing borrowed funds.