The market-clearing curve for substitutes is:
A. horizontal.
B. downward-sloping.
C. vertical.
D. upward-sloping.
D. upward-sloping.
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Fractional Reserve Banking
The above figure shows the payoff for two firms, A and B, that must each choose to sell either at a high or low price. Determine the dominant strategies for each firm (if any) and the Nash equilibria (if any)
What will be an ideal response?
The U.S. Social Security tax is an example of a
A) progressive tax. B) proportional tax. C) premium tax. D) regressive tax.
Quantitative easing is:
A. asset purchases that shift the composition of the Fed's balance sheet. B. expansion of the demand for aggregate reserves to drive down the IOER. C. statements today about policy targets in the future. D. expansion of the supply of aggregate reserves beyond the amount needed to maintain the policy rate target.