In the money market, equilibrium is achieved:
a. in the long run by the adjustment of interest rates.
b. in the short run by the adjustment of prices.
c. in the long run by the adjustment of prices.
d. in the short run by changes in the money supply.
Ans: c. in the long run by the adjustment of prices.
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Under the gold standard, each country had little control over its own monetary policies
a. True b. False
Which of the following transactions would be included in this year's GDP for the United States?
a. You buy a rug imported from Mexico. b. You buy stock in an American textile company. c. You purchase a table over the Internet from a North Carolina furniture manufacturer. d. You purchase a table over the Internet from a Mexican manufacturer.
Suppose that when disposable income increases by $1,000, consumption spending increases by $750. Given this information, we know that the marginal propensity to consume (MPC) is
A. 1.33. B. 4. C. 0.25. D. 0.75.
Taxes can be used to internalize negative externalities.
Answer the following statement true (T) or false (F)