If the consensus in securities markets is that a previous increase in the money supply will be inflationary, the likely result will be
A) higher real interest rates.
B) higher nominal interest rates.
C) lower real interest rates.
D) lower nominal interest rates.
B
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If the economy were experiencing a recession, which of the following would Keynes be in favor of?
A. Households should save less and consume more goods and services. B. The government should increase taxes to balance its budget during a recession. C. Businesses should decrease spending on new equipment until the economy improves. D. The government should discourage companies from exporting goods to foreign countries while people at home are unable to buy basic necessities.
Refer to Table 2.1. You can spend $40 on going to the movies or eating at a restaurant, or both. What is the opportunity cost of spending all your money at the restaurant?
Table 2.1 Item A B C D E Movie $0 $10 $20 $30 $40 Restaurant $40 $30 $20 $10 $0 a. $0 b. $10 c. $20 d. $30 e. $40
Any restriction of international trade that is accomplished by a quota can also be accomplished by a tariff.
Answer the following statement true (T) or false (F)
The natural rate of unemployment:
A. Means that the economy will always operate at that rate B. Means that the economy will always realize its potential output C. Is equal to the total of frictional and structural unemployment D. Is a fixed unemployment rate that does not change over time