Which of the following statements is true?
A) In the monetarist transmission mechanism, changes in the money market directly affect aggregate demand.
B) In the monetarist transmission mechanism, there is no need for the money market to affect the loanable funds market or investment before aggregate demand is affected.
C) In the monetarist transmission mechanism, if individuals are faced with an excess supply of money, they spend that money on a wide variety of goods---not just bonds or other assets, as is the case in the Keynesian transmission mechanism.
D) a and b
E) a, b and c
E
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Which of the following is NOT a characteristic of a perfectly competitive market?
A. Sellers can easily buy and sell the productive resources needed to enter the market. B. Buyers and sellers are well-informed. C. Each firm in the market sells a somewhat different variant of the good. D. There are many sellers, each of which sells only a small fraction of the total quantity exchanged.
Fast Stop, a gasoline and grocery quick mart, charges $1.50 for a small bag of pretzels and $2 for two small bags of pretzels. This is an example of ________.
A) third-degree price discrimination B) two-part pricing C) second-degree price discrimination D) an all-or-nothing offer
A budget surplus is the
A. total amount owed by the federal government. B. amount by which expenditures exceed revenues. C. amount by which revenues fall short of projections. D. amount by which revenues exceed expenditures.
Refer to the information provided in Figure 6.4 below to answer the question(s) that follow.
Figure 6.4Refer to Figure 6.4. Bill's budget constraint is AC. If the black bean price decreases, Bill's budget constraint will
A. remain at AC. B. swivel toward AO. C. swivel toward AB. D. swivel toward AD.