In this graph, why does point B move up to point C?
a. In the short run, the increase in money supply leads to a higher price level, which causes the interest rate to lower.
b. In the long run, the increase in money supply leads to a lower price level, which causes the interest rate to rise.
c. In the short run, the increase in money supply has little effect on price level, which causes the interest rate to lower.
d. In the long run, the increase in money supply leads to a higher price level, which causes the interest rate to rise.
d. In the long run, the increase in money supply leads to a higher price level, which causes the interest rate to rise.
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Which of the following is TRUE?
a. Maximizing division profits always leads to maximizing company-wide profits b. Managers of profit centers are not given any discretion in their decision making c. Profit centers often largely run by themselves without a lot of executive oversight d. A manager being rewarded on division revenues has no incentive to make good decisions for his division
The demand for a resource rises as
A. its productivity rises and the relative prices of substitutable resources rise. B. its productivity rises and prices of substitutable resources fall. C. its productivity falls and the relative prices of substitutable resources fall. D. its productivity falls and prices of substitutable resources fall.
What is the second-largest federal spending category?
a. defense
b. transfer payments
c. interest payments
d. state and local grants
In the cost-benefit analysis of public goods, the benefits
A. Are more easily estimated than the costs. B. Can be only roughly estimated using highly subjective techniques. C. Can be accurately measured using the market price of the public good. D. Can be accurately measured by ballot box economics.