In the short run, open-market purchases
a. increase investment and real GDP, and decrease nominal interest rates.
b. increase real GDP and nominal interest rates, and decrease investment.
c. increase investment and nominal interest rates, and decrease real GDP.
d. decrease investment, nominal interest rates, and real GDP.
a
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Monetarists believe that there is a ________ link between money supply growth and target variables and that the public is ________ in movements in the money supply
A) strong, interested B) strong, disinterested C) tenuous, interested D) tenuous, disinterested
Identify the externality that arises when basic research leads to new general knowledge. Is the externality positive or negative?
A country runs a deficit in its current account if:
a. ?it follows the double-entry bookkeeping requirement that total debits must equal total credits. b. ?foreign currency received from exports and transfers exceeds the foreign exchange needed to pay for imports and to make unilateral transfers. c. ?it consumes less goods and services compared to what it produces. d. ?foreign currency received from exports and transfers is less than the foreign exchange needed to pay for imports and to make unilateral transfers. e. ?the interest and dividends earned by its residents on foreign assets exceed the interest and dividends earned by foreigners who invest in domestic assets.
The opportunity cost of owner-provided labor is the
A. profit after all of the bills have been paid. B. salary the owner could have made if she worked at her best alternative job. C. explicit part of the wage rate paid to the owner. D. wage rate paid to the owner.