If the equation of exchange holds, and if the velocity of money and total output are fixed, then, if the money supply doubles,
A) the price level will increase by half.
B) the price level will decrease by half.
C) the price level will double.
D) the price level will decrease by 25 percent.
C
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The ________ view says that fiscal stimulus has a multiplier effect that makes it a ________ tool to fight a deep recession
A) Keynesian; weak B) "free lunch"; powerful C) Keynesian; powerful D) mainstream; powerful E) None of the above answers is correct.
The Coase Theorem implies that when there are no costs to trading, _____
a. resources will move to their most valued uses, depending upon who gets the initial property rights b. resources will move to their most valued uses, regardless of who gets the initial property rights c. resources might be misallocated, depending upon the who gets the initial property rights d. resources might be misallocated, regardless of who gets the initial property rights
When a government turns a deficit into a surplus we would expect
A) interest rates to rise. B) interest rates to decrease. C) the demand curve for loanable funds to shift rightward. D) that more investment is crowded out.
Explain why government subsidies are not always successful in promoting alternative energy
What will be an ideal response?