During a period of price stability our money supply performs

A. all of its jobs very well.
B. some of its jobs very well.
C. all of its jobs very poorly.
D. none of its jobs very poorly.


A. all of its jobs very well.

Economics

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The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. If the waterway is owned by a water ski club and the Coase theorem applies, then the factory will produce ________ tons of chemicals a week.

A) 1 ton B) as many tons as possible C) 3 tons D) 5 tons

Economics

Figure 7-1   . In Figure 7-1, which graph best represents total physical product with diminishing returns?

A. 1 B. 2 C. 3 D. 4

Economics

Assume the economy is initially in equilibrium where potential GDP equals real GDP

If the expected inflation rate, the term structure effect, and the default-risk premium are constant and the Fed wants to lower the inflation rate, the Fed could ________ the target short-term nominal interest rate, which will result in real GDP being ________ potential GDP. A) increase; greater than B) increase; less than C) decrease; greater than D) decrease; less than

Economics

The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob is

A) risk averse. B) risk neutral. C) risk loving. D) risk premium.

Economics