An increase in money supply causes the real interest rate to ________ and the price level to ________ in general equilibrium
A) rise; rise
B) remain unchanged; fall
C) remain unchanged; rise
D) fall; fall
C
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Figure 4.3 illustrates the demand for tacos. An increase in the demand for tacos is represented by the movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
(Figure: Productivity) Look at the figure Productivity. An improvement in technology with everything else remaining unchanged is shown on the diagram as a movement from
What will be an ideal response?
The only market structure in which there is significant interdependence among firms with regard to their pricing and output decisions is
A. Monopoly. B. Oligopoly. C. Monopolistic competition. D. Perfect competition.
Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. Which of the following is correct?
A. The diagrams portray neither long-run nor short-run equilibrium.
B. The diagrams portray both long-run and short-run equilibrium.
C. The diagrams portray short-run equilibrium but not long-run equilibrium.
D. The diagrams portray long-run equilibrium but not short-run equilibrium.