Under an infinitely inelastic supply of land, the economic rents to land ________ if the price of land doubles
A) increase by less than 100%
B) double
C) increase by more than 100%
D) none of the above
B
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The demand for money schedule shows the ________ relationship between money demand and the nominal interest rate which means that as the ________
A) negative; opportunity cost of holding money increases, the nominal interest rate increases B) negative; nominal interest rate increases, the opportunity cost of holding money increases C) positive; nominal interest rate increases, the opportunity cost of holding money increases D) positive; nominal interest rate increases, the opportunity cost of holding money decreases E) negative; nominal interest rate increases, the opportunity cost of holding money decreases
______ is the cost of inputs whose use does not vary as the firm's output changes.
A. Sunk cost B. Fixed cost C. Total cost D. Explicit cost
The SRAS curve is upward sloping, there is a liquidity trap, and investment spending is sensitive to changes in the interest rate. According to the monetarist transmission mechanism, if the money supply increases the AD curve __________ and the price level __________
A) does not change; does not change B) shifts to the left; falls C) shifts to the right; rises D) does not change; rises E) none of the above
What economic functions do rent, interest, and profit payments perform? How effective are they in performing these functions?
What will be an ideal response?