The government of a DVC may purposely cause inflation because:
A. a rapid rate of inflation attracts private foreign capital into a DVC.
B. there is conclusive evidence that inflation discourages people from having large families.
C. this will strengthen the nation's position in international markets.
D. inflation works like taxation in that it may release resources from consumption so that they
can be invested.
D. inflation works like taxation in that it may release resources from consumption so that they
can be invested.
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The effect on the aggregate demand curve of which of the following is most similar to the effect of a decrease in the barriers to efficient functioning of financial markets?
A) a decrease in autonomous investment B) a decrease in the inflation rate C) an autonomous loosening of monetary policy D) a decrease in expected inflation E) a negative price shock
A graph is one method of expressing a model
a. True b. False Indicate whether the statement is true or false
When the government created the Consumer Product Safety Commission they created what type of government regulation?
a. social regulation b. economic regulation c. antitrust policy d. none of the above
Suppose product price is fixed at $24; MR = MC at Q = 200; AFC = $6; AVC = $16. What do you advise this firm to do?
A. Increase output. B. Decrease output. C. Stay at the current output; the firm is losing $200. D. Stay at the current output; the firm is earning a profit of $400.