The purpose of expansionary monetary policy is to increase ________.
A. real GDP
B. the GDP gap
C. interest rates
D. the inflation rate
Answer: A
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In the Cournot model, the output that a firm chooses to produce increases as
A) the total output of other firms increases. B) the number of firms in the market increases. C) the number of firms in the market decreases. D) its marginal cost increases.
John likes to buy cola every month. He prefers to spend $0.10 per can, but is willing to spend as much as $0.15 per can. Usually, a can of cola costs $0.12 . However, due to decreased demand, the price has dropped to $0.11 per can, increasing John's purchasing power. This is an example of the _____
a. income effect b. substitution effect c. accelerator effect d. wealth effect
What is bank insolvancy?
According to the principle of diminishing returns, an additional worker decreases total output.
Answer the following statement true (T) or false (F)