The classical theory of inflation:
A. describes a long-run equilibrium.
B. explains the direct relationship between money supply and the price level.
C. shows neutrality of money in the long run.
D. All of these statements are true.
A. describes a long-run equilibrium.
B. explains the direct relationship between money supply and the price level.
C. shows neutrality of money in the long run.
D. All of these statements are true.
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Government debt which pays for ________ is a burden in that it yields no ________ benefits
A) hospitals, future B) ammunition for military target practice, current C) Social Security benefits, future D) public universities, current
The market demand for MP3 player is p = 50 - 0.5Q, and the marginal cost for Nick to obtain and sell a MP3 player is $10
If he receives $12 for each MP3 player he sells from the store owner and the store owner controls the quantity of MP3's available for sale, then A) 40 MP3 players will be sold. B) joint profit is $798. C) joint profit will be maximized. D) Nick will sell as many as he can.
Attaining higher and higher levels of air cleanliness causes
A) additional costs to rise to increasingly high levels.
B) larger and larger increases in per capita incomes.
C) additional costs to fall to lower and lower levels.
D) larger and larger marginal benefits to society.
Adding government to the Barro model affects the household budget constraint by
a. adding the present value of real transfers net of real taxes as a source of funds. b. adding the present value of real transfers plus real taxes as a use of funds. c. adding and subtracting the present value of real transfers net of real taxes as a source of funds, for no net effect. d. subtracting the present value of real transfers net of real taxes as a use of funds.