If the Fed wanted to prevent a change in money demand from affecting real GDP, which of the following responses would it choose?
a. A neutralization response
b. A constant interest rate response
c. A constant money supply response
d. A constant tax rate response
e. A constant government spending response
A
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According to the Prebisch-Singer thesis
(a) demand for primary products has steadily fallen. (b) profits of primary producers have steadily fallen. (c) primary producers' terms of trade have steadily fallen. (d) prices of primary products have risen over time.
What role should the government play with respect to the agricultural sector in developing countries in their attempt to alleviate poverty?
What will be an ideal response?
A price ceiling established below the market clearing price will usually cause
A. no change in the market clearing price. B. an excess supply. C. nonprice rationing. D. a decrease in the market clearing price.
As output increases
A) average variable cost becomes smaller and smaller. B) the difference between average total cost and average variable cost decreases. C) marginal cost increases continuously. D) the difference between average total cost and average variable cost becomes greater and greater.