Suppose the central bank increases the growth rate of the money supply. In the long run, which of the following is unaffected by this change in policy?
a. the unemployment rate and the inflation rate
b. the unemployment rate but not the inflation rate
c. the inflation rate but not the unemployment rate
d. neither the inflation rate nor the unemployment rate
b
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"The national debt is too large. The government must stop spending so much money." This statement is
a. a normative statement. b. a positive statement. c. a testable hypothesis. d. both b and c.
Marginal profit is positive at all positive output levels.
Answer the following statement true (T) or false (F)
Fix-High, a car service chain, immediately needs to raise $16 million to fund the construction of four new service centers. If Fix-High's owners wish to borrow funds without sharing the ownership of the firm, they should: a. liquefy their assets
b. take out a bank loan. c. issue stocks of their firm. d. wait till they make a profit of $16 million.
Forests in the United States have, in recent decades,
a. expanded substantially in the amount of wood grown. b. been steadily declining in acreage and in wood produced. c. been cut and cleared at a faster and faster rate. d. shown no trend in growth or shrinkage.