An increase in the money supply is likely to reduce:
A. The general price level
B. Nominal income
C. Money demand
D. Interest rates
D. Interest rates
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Positive economic profits in a perfectly competitive market imply that:
A) producers are earning more than their opportunity cost. B) existing firms are likely to leave the market. C) the cost of production is equalized across producers. D) government intervention is required to stabilize the market.
During an inflationary period, those most likely to suffer reduced wealth are those who are holding their wealth in: a. gold
b. real estate. c. currency. d. stocks.
According to the text, the real source of power in the modern corporation lies with the
a. stockholders b. bondholders c. board of directors d. bankers e. managers
During normal times, the multiplier effect of an increase in government spending financed by taxes will be
a. strengthened, if the additional spending flows into sectors of the economy where the unemployment rates are low. b. weakened by an offsetting reduction in spending due to the higher taxes. c. unaffected, as long as the higher taxes are in the future. d. strengthened, if corporate tax rates are increased and personal tax rates remain unchanged.