Other things being equal, an increase in the supply of money
A. reduces aggregate demand.
B. increases the price level.
C. reduces the amount of money balances.
D. generates significant changes in relative prices.
Answer: B
You might also like to view...
Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the first, second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is ________, the coupon rate is ________, and the term of this bond is ________.
A. $10,000; 4%; four years B. $10,000; $400; 4% C. $400; 40%; four years D. $10,400; 4%; four years
Assume the production of a particular good is characterized by significant economies of scale. In addition, three different versions of the good can be produced, and large segments of the population prefer different versions of the good
In this case, the preferred market structure for this good would be: A) perfect competition. B) monopoly. C) monopolistic competition. D) oligopoly.
In the long run, both monopolistic competition and perfect competition result in:
a. a wide variety of brand-name choices for consumers. b. an efficient allocation of resources. c. zero economic profit for firms. d. excess capacity.
What oligopolist pricing theory is based on firm awareness of how competing firms will react to actions it takes and develops strategies based on that reaction?
a. game theory b. profit-maximizing theory c. price leadership theory d. price discrimination theory e. theory of competition