The liquidity trap refers to the
A) assumption that the money supply curve is vertical as a result of the Fed's control.
B) problem that occurs when interest rates reach such high levels that no individuals want to hold their wealth in the form of money.
C) situation that occurs when an excess supply of money results in people holding more money than they desire.
D) possibility that interest rates drop so low that people willingly hold all the additions to the money supply, rather than use it to buy bonds.
D
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Use the following table to answer the question below.OutputTotal Cost0$10102020283038405350736098The marginal cost associated with the production of the fortieth unit of output is
A. $2.50. B. $9.80. C. $1.50. D. $1.00.
Two countries, Blue Violet and Orange Rose, produce only two goods: teapots and coffeepots. The table above gives their production possibilities. ________ has a comparative advantage in teapots and ________ has a comparative advantage in coffeepots
A) Orange Rose; Blue Violet B) Blue Violet; Orange Rose C) Blue Violet; Blue Violet D) Orange Rose; Orange Rose
In order for large countries to successfully use tariffs to increase well being,
A) they must have significant market power so that foreign firms will cut prices to preserve their sales. B) the deadweight loss created by the tariff must be greater than the government revenue the tariff generates. C) domestic production must increase more significantly than for the small country case. D) domestic consumption and imports must decrease more significantly than in the small country case.
Data on productivity gains in the 1990s in the United States strongly suggest that a significant share of those gains was attributable to:
A) improvements in education and training. B) improvements in information technology. C) substantial reductions in labor costs. D) increased demand for goods and services.