When the money supply decreases
a. interest rates fall and so aggregate demand shifts right.
b. interest rates fall and so aggregate demand shifts left.
c. interest rates rise and so aggregate demand shifts right.
d. interest rates rise and so aggregate demand shifts left.
d
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Suppose the market demand curve (D) in an oligopoly market characterized by a dominant firm and a fringe is given by Q = 25 - 2P. The fringe supply curve is given by QF = -1 + 0.3P. If the marginal cost of production for the dominant is $3, calculate the market price and total output produced by the dominant firm and the fringe
a. Q = 14.42 units and P = $8.64 b. Q = 10.69 units and P = $7.15 c. Q = 12.69 units and P = $6.5 d. Q = 8.74 units and P = $5.15
Firms in a perfectly contestable market will be forced to operate as efficiently as possible and to charge prices as low as long-run financial survival permits. Why?
What will be an ideal response?
The European Central Bank's equivalent of the Fed's open market operations (OMO) is:
A. very similar to the Fed's OMO in that they are highly centralized. B. dissimilar to the Fed's OMO because fewer banks participate in the auctions of the securities. C. similar to the Fed's OMO in that they accept only U.S. Treasury securities in their refinancing operations. D. dissimilar to the Fed's OMO in that the operations are conducted at all 19 of the National Central Banks simultaneously.
Minimum-wage laws can keep wages
a. above equilibrium and cause a surplus of labor. b. above equilibrium and cause a shortage of labor. c. below equilibrium and cause a surplus of labor. d. below equilibrium and cause a shortage of labor.