Which of the following would be included in inflationary expectations that are formed adaptively?
A) Money supply growth over the past two years
B) Statements made by the President of the United States
C) The average inflation rate over the past three years
D) A recent price agreement by oil exporting nations
C
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Because these securities are more liquid and generally have smaller price fluctuations, corporations and banks use the ________ securities to earn interest on temporary surplus funds
A) money market B) capital market C) bond market D) stock market
An inefficient allocation of resources or unusually high unemployment: a. causes the production possibilities curve to shift inward
b. causes the production possibilities curve to shift outward. c. can each be illustrated by a point inside the production possibilities curve. d. can each be illustrated by a point outside the production possibilities curve.
Suppose a 5 percent increase in price causes a 25 percent decrease in quantity demanded. Which of the following statements is most likely true? a. There are many substitutes for this good
b. There are few substitutes for this good. c. The market for the good is a necessity. d. The price change persists over a very short period of time.
Nominal GDP will definitely increase when
a. prices increase and output increases. b. prices increase and output decreases. c. prices decrease and output increases. d. All of the above are correct.