Monetary policy authorities can affect real interest rates
A) in the short run, but not in the long run.
B) in the long run, but not in the short run.
C) permanently.
D) both in the long run and the short run.
A
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If Countries A and B produce only either rubber bands or paper clips, their maximum outputs are shown in the production possibilities schedules below.CountryRubber BandsPaper ClipsA4080B1040In country A the opportunity cost of 1 paper clip is
A. 1/2 rubber band. B. 2 rubber bands. C. 1/4 rubber band. D. 1 rubber band.
Time Fixed Effects regression are useful in dealing with omitted variables
A) even if you only have a cross-section of data available. B) if these omitted variables are constant across entities but vary over time. C) when there are more than 100 observations. D) if these omitted variables are constant across entities but not over time.
Assuming MPC = 0.5, a $500 increase in intended investment will shift the aggregate expenditure curve up by
a. $500 and will increase the equilibrium level of national income by $500 b. $500 and will increase the equilibrium level of national income by less than $500 c. $500 and will increase the equilibrium level of national income by more than $500 d. more than $500 and will increase the equilibrium level of national income by more than $500 e. less than $500 and will increase the equilibrium level of national income by less than $500
Neither the demand for gasoline nor the supply of gasoline is perfectly elastic or inelastic. If the federal government eliminated the 18.4 cents per gallon gasoline tax, the price paid by buyers would
A) decrease by less than 18.4 cents. B) decrease by 18.4 cents. C) decrease by more than 18.4 cents. D) stay the same. E) increase by 18.4 cents.