Suppose the central bank implements a monetary expansion that is not fully anticipated by financial markets. Given this information, we would expect
A) stock prices to rise.
B) stock prices to fall.
C) stock prices to remain unchanged.
D) an ambiguous effect on stock prices.
E) none of the above
A
You might also like to view...
According to the text, everyone shouts at a party in order to be heard. If instead everyone spoke at a normal volume people would still be heard, but people continue to shout because:
A. the payoff matrix is unknown to the people at a party. B. shouting is a dominated strategy. C. shouting is a dominant strategy. D. shouting can be sustained using a tit-for-tat strategy.
When you use currency to buy lunch, money is performing which function?
A) store of value B) medium of exchange C) barter token D) unit of purchase E) unit of currency
Assume the market is in equilibrium in the graph shown at demand D and supply S1 (and a quantity of 5). If the supply curve shifts to S2, and a new equilibrium is reached (at a quantity of 7), which of the following is true?
A. Consumer surplus increases by $5.
B. Consumer surplus decreases by $5.
C. Consumer surplus increases by $9.
D. Consumer surplus decreases by $9.
If the quantity of Harley-Davidson motorcycles demanded decreases by 10% when the price increases by 20%, the price elasticity of demand for Harley-Davidson motorcycles is:
A. -0.50 B. -2.0 C. -20.0 D. -10.0