An unanticipated increase in the money supply will lead to
What will be an ideal response?
a decline in interest rates, an increase in investment, and an increase in aggregate demand.
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Suppose consumer preference for beef starts to rise while the cost of raising beef continues to rise. In the market for beef, this would be represented by the equilibrium price ________ and the equilibrium quantity ________
A) increasing; increasing or decreasing B) increasing or decreasing; increasing C) decreasing; increasing or decreasing D) increasing or decreasing; decreasing
Corrective taxes are often difficult to implement because _____
a. those affected by the externality are often loathe to use political means to implement the tax b. those creating the externality threaten to shut down c. those who suffer from the externality refuse to talk about it d. the creator of an externality will use political means to try to prevent the tax
If farmers decide individually whether or not to vaccinate their cattle against mad cow disease, which of the following is true?
a. The equilibrium quantity is too low for efficiency. b. The equilibrium price and quantity are too high for efficiency. c. The equilibrium price is efficient. d. The equilibrium quantity is too high for efficiency. e. The equilibrium price and quantity are efficient.
Use the graph to help determine which one of the following statements regarding unemployment and business cycles is true.?
A. The unemployment rate usually continues to rise even after the recession has ended.
B. The unemployment rate fell right after the end of the recession in November 2001.
C. The unemployment rate was not affected by the recession in November 2001.
D. The unemployment rate fell right the beginning of the recession in November 2001.