According to monetarists:
A. changes in the money supply are the primary cause of changes in the price level.
B. an expansionary fiscal policy will lower interest rates and overstimulate the economy.
C. changes in the velocity of money are more important than changes in the money supply in
causing the level of economic activity to change.
D. the supply of money changes in response to changes in the levels of real output and
prices.
A. changes in the money supply are the primary cause of changes in the price level.
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If the depreciation rate in an economy is 10%, and the capital stock in the economy is $1,000, the level of investment required to keep the economy at a steady state is equal to:
A) $110. B) $1,000. C) $250. D) $100.
An increase in the expected profit from new capital brings about a
A) movement down along the demand for loanable funds curve. B) movement up along the demand for loanable funds curve. C) rightward shift of the demand for loanable funds curve. D) leftward shift of the demand for loanable funds curve. E) rightward shift of the supply of loanable funds curve.
Historically, government bonds have averaged a real return of about ________ percent, while a broad index of stocks generates a ________ percent return over the same period.
A. 7; 2 B. 2; 7 C. 12; 7 D. 7; 12
A firm has a total cost function of C(Q) = 50 + 10Q1/2. The firm experiences:
A. diseconomies of scale. B. constant returns to scale. C. economies of scale. D. All of the statements associated with this question are correct, depending on the quantity.