The direct impact on spending of short-term interest rate changes by central banks is:
A. not that powerful.
B. only effective for net exports but not for investment and consumption.
C. definitely the strongest of all transmission mechanisms.
D. only effective for consumption but not investment.
Answer: A
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To practice third-degree price discrimination, each of these market conditions must be met except which one?
A) The firm must have market power. B) No arbitrage opportunities can exist between customer groups. C) Different groups of customers with equal own price elasticities of demand must exist. D) Different groups of customers with different own price elasticities of demand must exist.
The M1 money supply consists primarily of: a. savings deposits
b. certificates of deposit. c. miscellaneous near-monies. d. checkable deposits. e. money market mutual fund accounts.
Competition as a dynamic process implies that individual firms in a market
a. seek to utilize a variety of techniques, such as product, style, and convenience of location, to win the dollar vote of consumers, but they never use price to compete. b. use price competition as well as other forms of competition to gain the dollar votes of consumers. c. produce a homogeneous product. d. cooperate, attempting to establish a price and output structure so each firm can survive and continue to serve the consumer.
The original Dow Jones Industrial Average (DJIA) contained ____________ stocks, while the DJIA now consists of ____________ stocks
A) 10; 500 B) 11; 30 C) 15; 50 D) 20; 60