If the demand curve for money were horizontal at some interest rate, an increase in the money supply
A) would lower the interest rate.
B) would increase the rate of inflation.
C) would be highly effective in reducing inflation.
D) would not change the interest rate
Ans: D) would not change the interest rate
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Public goods are distinguished by two primary characteristics. What are they?
A) nonrivalry and nonexcludability B) market failure and high prices C) government intervention and low prices D) rivalry and exclusivity
Refer to the table shown, which shows the demand schedule for a product sold by a monopolist. Marginal revenue is negative:Price of product($)Quantity demanded per year$143$124$105$86$67
A. when price is above $10. B. for every price. C. when price is $10. D. when price is below $10.
In the Cournot model,
A. each firm takes the quantities produced by its rivals as given. B. one firm plays a leadership role and its rivals merely follow. C. prices are higher and quantities are slightly less than we would see if the firms colluded. D. each firm takes the prices charged by its rivals as given.
To get at the large pool of oil embedded in porous rock deep below North Dakota, a process known as ________ is employed.
A. explosive mining B. compressive extraction C. chemical immersion D. hydraulic fracturing (fracking)