It is possible that when the money supply rises, interest rates may ________ if the ________ effect is more than offset by changes in income, the price level, and expected inflation
A) fall; liquidity
B) fall; risk
C) rise; liquidity
D) rise; risk
C
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Explain the following statement: Individuals with different tastes might have the same tastes at the margin at their current consumption bundles.
What will be an ideal response?
The most efficient way to encourage the growth of an infant industry is through
A) a voluntary export restraint. B) a tariff. C) a subsidy. D) an import quota.
As the manager of good A, which of the following would be of greatest concern (based on the regression results above)?
A) None of the factors below would be of concern. B) an impending recession C) pressure on you by your salespersons to lower the price so that they can boost their sales D) a price reduction by the makers of good B
Suppose the unemployment rate remained unchanged at 10 percent from 1999 through 2001 . We can conclude that
a. the same 10 percent of the people in the economy were out of work during the 1999–2001 period b. one of every 10 people in the labor force was unemployed during the 1999–2001 period c. the same 10 percent of the people in the labor force were out of work during the 1999–2001 period d. people in the labor force were out of work for 10 percent of the 1999–2001 period e. 10 percent of the people in the economy were out of work for 10 percent of the 1999–2001 period