In the above figure, suppose the economy is initially on the demand for money curve MD1. What is the effect of a fall in the nominal interest rate?
A) The demand for money curve would shift rightward to MD2.
B) The demand for money curve would shift leftward to MD0.
C) There would be a movement upward along the demand for money curve MD1.
D) There would be a movement downward along the demand for money curve MD1.
D
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A monopoly creates no deadweight when it maximizes its profit
Indicate whether the statement is true or false
Which of the following is the most important determinant of the elasticity of supply? a. The number of uses for the product
b. The number of close substitutes to the product available to consumers. c. The amount of time producers have to adjust their behavior in response to a price change. d. The percentage of their incomes consumers spend on the product.
The unemployment rate is the percentage of:
a. the total adult population without jobs. b. adults who are in the labor force but who do not have jobs. c. the total adult population that are not working full-time jobs. d. the population without jobs.
A cartel is
A. generally legal in the United States. B. a group of firms acting under collusion to control output and maximize group profits. C. similar to a monopolistically competitive industry. D. a group of firms acting like a perfectly competitive industry.