Which of the following will NOT occur in the short run when the money supply decreases?
A) The interest rate will increase. B) The price level decreases.
C) People will buy fewer goods and services. D) Aggregate supply decreases.
D
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A firm that sells goods to foreign countries on a regular basis can avoid exchange-rate risk by
A) buying stock options. B) selling puts on financial futures. C) using a foreign exchange swap. D) buying swaptions.
The U.S. Postal Service enjoys a monopoly position because of patent rights
a. True b. False Indicate whether the statement is true or false
The banking system creates additional money by making loans equal to total reserves.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases. B. initially increases, then decreases. C. decreases. D. remains constant.