When a liquidity trap situation exists, we know that
A) an open market operation will have no effect on the supply of money.
B) an open market operation will have no effect on the monetary base.
C) fiscal policy will have no effect on the demand for goods.
D) expansionary monetary policy will be deflationary.
E) none of the above
E
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The short-run aggregate supply line is:
A. upward sloping. B. downward sloping. C. horizontal at the current rate of inflation. D. vertical at the economy's potential output.
If total utility is falling, marginal utility is:
a. positive. b. negative c. positive, but declining. d. either positive or negative. e. zero.
Monopolies may be the only firms large enough to commercially produce a significantly innovative new product
a. True b. False Indicate whether the statement is true or false
Most economists believe the principle of monetary neutrality is
a. relevant to both the short and long run. b. irrelevant to both the short and long run. c. mostly relevant to the short run. d. mostly relevant to the long run.