A decrease in the interest rate could have been caused by the money-demand curve shifting
a) leftward because the price level fall.
b) leftward because the price level rose.
c) rightward because the price level fell.
d) rightward because the price level rose.
Ans: a) leftward because the price level fall.
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Forward guidance refers to central banks
A) setting long-term interest rates. B) engaging in monetary policy to offset the negative side-effects of the government's fiscal policies. C) telling the public what future monetary policy will be. D) simultaneously reducing unemployment and inflation.
In a nation's balance of payments, the current account includes
A) the changes in the official reserve transaction account. B) the purchases of foreign assets. C) the balance of the trade account, the balance of the services account, and net unilateral transfers. D) all of the above.
The shape of an experience curve suggests that
A) specialization does not matter. B) learning does not pay. C) experience can lower costs. D) none of these choices.
A duopoly is an industry with:
A. one firm. B. two firms. C. many firms that sell slightly differentiated products. D. many firms that sell identical products.