The rational expectations hypothesis indicates that a monetary policy designed to alter real Gross Domestic Product (GDP) will fail unless
A) changes in the money supply are completely anticipated.
B) labor unions have long-term contracts.
C) the government's budget is not in deficit.
D) changes in the money supply are unexpected.
D
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The basic rule for maximizing net revenue is: Charge a price, or set of prices, so that
A) expected marginal revenue equals expected marginal cost. B) expected marginal revenue exceeds expected marginal cost. C) expected marginal revenue is equal to or less than expected marginal cost. D) marginal revenue turns out in practice to be equal to or less than marginal cost. E) marginal revenue turns out in practice to be greater than marginal cost.
You expect to rent out a vacation home on Sanibel Island for $800 a month as an investment. Upkeep is estimated at $3,000 a year. If the current market interest rate is 5 percent, you are willing to pay __________ for the house
a. $132,000 b. $100,000 c. $160,000 d. $192,000 e. $800,000
Refer to the graph showing the supply of books. A shift from S0 to S1 would most likely occur for what reason?
A. A decrease in the number of suppliers in the market B. A decrease in the cost of producing books C. An increase in the price of books D. An increase in taxes levied on producers of books
Consider Figure 8.9. The outcome of the game will be that:
A. both choose a high price. B. both choose a low price. C. Becky chooses a high price and David chooses a low price. D. David chooses a high price and Becky chooses a low price.