Which of the following is the objective of expansionary monetary policy?
a. An increase in employment.
b. A decrease in employment.
c. An increase in the velocity of money.
d. An increase in prices proportional to the rise in the money supply.
a
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A normal rate of return on investment is equal to
A) accounting profit minus economic profit. B) the opportunity cost of capital plus any other implicit costs. C) accounting profit plus economic profit. D) total revenue plus total accounting profit
The monopolist's outcome happens at a:
A. lower price than the perfectly competitive one. B. higher price than the perfectly competitive one. C. higher quantity than the perfectly competitive one. D. equal quantity that is equal to a perfectly competitive one.
At higher nominal rates of interest, the demand for real balances is:
a. higher because savers can earn higher returns. b. lower because the opportunity cost of holding those funds is higher. c. invariant with respect to the nominal interest rate. d. inversely related to the price level.
Which of the following cost functions exhibits cost complementarity?
A. Q2Q1 + 2Q1 B. ?3Q2 + 4Q1 C. 5Q1Q2 ? Q1 D. ?5Q1Q2 + 7Q1