Which of the following statements is (are) correct? According to real business cycle theory,
a. the desirable monetary policy would appear to be one that results in a slow steady growth in the money supply and, thus, stable prices.
b. there is some role for activist monetary stabilization policy of a Keynesian type.
c. changes in aggregate demand cannot impact output.
d. Both a and b
e. Both a and c
E
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A decline in Tobin's q can be caused by ________
A) a rise in the market value of a firm B) an increase in stock prices C) a decline in stock prices D) a decline in the replacement cost of capital
Refer to the information provided in Table 8.3 below to answer the question(s) that follow.
Table 8.3
Refer to Table 8.3. From the information in the given table,
A. the firm is in the long run. B. the difference between total cost and total variable cost decreases as output increases. C. the firm eventually experiences diminishing returns to its variable input. D. the marginal cost curve intersects the average total cost curve between 3 and 4 units of output.
When the percentage change in the quantity demanded is less than the percentage change in price, then demand is
A) inelastic. B) unit elastic. C) elastic. D) irrelevant. E) undefined.
What are the important factors that determine the velocity of money?
What will be an ideal response?