A decrease in the interest rate will_____.
a. increase the quantity of money supplied in the economy
b. decrease the quantity of money supplied in the economy
c. have no effect on the quantity of money supplied in the economy
d. increase the quantity supplied of money at an increasing rate
Answer: c. have no effect on the quantity of money supplied in the economy
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If in the long run a firm makes zero profit, it should exit the industry
Indicate whether the statement is true or false
The difference between voluntary and involuntary unemployment is that:
a. involuntary unemployment exists when wages are high. b. voluntary unemployment exists in equilibrium. c. voluntary unemployment falls as wages rise. d. both b and c. e. all of the above.
The maturity date of a bond is:
a. the date on which the lender receives the coupon from the borrower. b. the date on which the borrower takes the loan. c. the date on which the bond is bought by an individual from the firm. d. the specified time at which the borrower repays the loan. e. the specified time at which the borrower sells the bond held by him to someone else.
Heath's income elasticity of demand for concerts is 2 . All else equal, this means that if his income increases by 10 percent, he will purchase tickets for
a. 2 percent more concerts. b. 5 percent more concerts. c. 10 percent more concerts. d. 20 percent more concerts.