Entry leads to reduced firm profits because it leads to a lower price.
Answer the following statement true (T) or false (F)
True
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If the Japanese central bank performed a sterilized intervention to reduce the value of the yen, the most likely result is:
A) a lower value of the yen due to an increase in the monetary base in Japan. B) a lower value of the yen due to a decrease in Japanese interest rates. C) a higher value of the yen since the intervention was sterilized. D) no change in the value of the yen since neither the monetary base nor Japanese interest rates would be affected.
We know how many dollars banks create using the:
A. money multiplier. B. federal funds. C. demand deposits. D. interest rate.
Which of the following statements is correct?
A) The Social Security program funnels transfers from retired individuals to the youngest children of low-income families. B) Social Security is an entitlement which is available to everyone, including those who have not contributed to the fund during their active work years. C) Social Security benefits are received by people who had contributed to the fund during their active work years. D) As a public transfer payment, Social Security benefit is available only to the poor.
If the quantity supplied of money is less than the quantity demanded of money, people will ________ bonds which will cause bond prices to ________ and the nominal interest rate to ________ until the quantity demanded and quantity supplied of money are equal.
A. buy; fall; rise B. sell; fall; rise C. sell; rise; fall D. sell; fall; fall