The aggregate real money demand schedule L(R,Y)
A) slopes upward because a fall in the interest rate raises the desired real money holdings of each household and firm in the economy.
B) slopes downward because a fall in the interest rate reduces the desired real money holdings of each household and firm in the economy.
C) has a zero slope because a fall in the interest rate keeps constant the desired real money holdings of each household and firm in the economy.
D) slopes downward because a fall in the interest rate raises the desired real money holdings of each household and firm in the economy.
E) slopes downward because a rise in the interest rate makes consumers less focused on the liquidity of their assets.
D
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A typical trend line drawn through a series of business cycles
a. is horizontal, indicating that the economy always returns to equilibrium b. is horizontal, indicating that economic phases offset each other c. is downward sloping, indicating that the unemployment rate decreases over time d. is upwards sloping, indicating that the unemployment rate decreases over time e. is upward sloping, indicating an annual rate of growth that is greater than zero
Social welfare can be enhanced by allowing firms to trade their rights to pollute
a. True b. False Indicate whether the statement is true or false
Game theory is important for understanding which of the following market types?
a. perfectly competitive and oligopolistic markets b. perfectly competitive markets but not oligopolistic markets c. oligoplistic but not perfectly competitive markets d. neither oligopolistic nor perfectly competitive markets.
From the economist's perspective, "market failures" basically arise when:
A. the market system is unable to adapt to or to accommodate change. B. the quantity demanded for a good or service is greater than the quantity supplied of the good or service. C. demand and supply do not accurately reflect all the benefits and all the costs of production. D. the quantity supplied of a good or service is greater than the quantity demanded for a good or service.