A good proxy for the flow of consumption services would be
A) aggregate consumption.
B) consumption of services and consumption of durables.
C) consumption of durables and consumption of nondurables.
D) consumption of nondurables and consumption of services.
D
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If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes
A. the industry would more closely approximate pure competition. B. the likelihood of realizing economic profits in the long run would be enhanced. C. the likelihood of collusive pricing would increase. D. individual firms would now be operating at outputs where their average total costs would be higher.
A tax on a good whose demand is perfectly price inelastic will be effective in discouraging consumption of that good.
Answer the following statement true (T) or false (F)
Refer to Table 4.2. With which scenario will you be indifferent about investing in either U.S. or Japanese bonds?
A) A B) B C) C D) D
Suppose that velocity and output are constant and that the quantity theory and the Fisher effect both hold. What happens to inflation, real interest rates, and nominal interest rates when the money supply growth rate increases from 5 percent to 10 percent?