If velocity does not change and if real GDP and the quantity of money grow at the same rate, then the price level
A) does not change and the inflation rate is zero.
B) falls and the inflation rate is negative.
C) rises and the inflation rate is negative.
D) falls and the inflation rate is positive.
E) rises and the inflation rate is positive.
A
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The main input into the production of Starbuck's coffee is imported coffee beans. If the dollar depreciates, how will this affect the U.S. retail coffee market?
a. Input prices will fall and supply will decrease. b. Input prices will fall and supply will increase. c. Input prices will rise and supply will decrease. d. Input prices will rise and supply will increase.
In the United States, antitrust enforcement focuses on
A) the profitability of the leading firms in an industry. B) the degree of market concentration within a market. C) the average level of prices charged by firms. D) the price-cost margin of an industry.
Businesses go to credit markets in order to
A. obtain financial assets that can be used to buy capital. B. obtain capital so they can earn rents. C. channel their savings into investments. D. obtain capital.
The plusses and minuses of the patent system include the following, except:
A. It could give inventors an incentive to bear the research and development costs of new products B. It could allow stodgy old firms to survive longer than they should against innovative rivals C. It would prevent the existence of "patent trolls" or firms whose main purpose is to sue companies D. It may hinder creative destruction especially in complex products that encompass several patents