The supply curve for money ________
A) is upward sloping with respect to interest rates
B) is fixed to a specified interest rate
C) is fixed regardless of the interest rate
D) is downward sloping with respect to interest rates
E) none of the above
C
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Suppose GE produces 1 million light bulbs per month While labor is variable both in the short run and the long run, capital is fixed in the short run. Labor is sold at a rate w and capital is rented at a rate r. a. On a graph with labor on the horizontal axis, illustrate the current isocost and isoquant for GE. Carefully label the slope of the isocost. b. For the rest of the problem, suppose a new tax on capital is implemented but GE intends to continue to produce 1 million light bulbs per year. What will GE do differently in the short run and the long run? Explain using your graph from part (a). c. Using your answer to part (b), explain what happens to the short run cost curve in the short run. What happens to this short run curve in the long run? Do costs rise more or less in the
long run than they do in the short run? d. Do total costs rise more or less in the long run than total expenditures do in the short run? Explain. What will be an ideal response?
How is it possible for marginal cost to equal to the slope of either the total variable cost function or the total cost function?
What will be an ideal response?
A sole proprietorship is characterized by:
a. separation of ownership and management. b. mutual agency. c. existence of multiple contracts. d. unlimited liability.
The observed unemployment rate is less than the natural rate of unemployment if:
a. the inflation rate is lower than expected. b. the reservation wage is adjusted to account for higher inflation. c. real wage increases with increase in prices. d. reservation wages go up with the rate of inflation. e. the inflation rate is higher than expected.