In 2014, the price of peanuts was rising, which led peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the effect on the buyers was larger than the effect on the sellers
Consequently, in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) rise; an increase
B) rise; a decrease
C) fall; a decrease
D) fall; an increase
A
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The two basic ways for workers to acquire human capital are
A) formal education and "learning by doing." B) purchases in the capital market and trade. C) increases in the capital stock and increases in total factor productivity. D) training and intuition.
Variables measured at current market prices are nominal, rather than real. In what sense are nominal variables unreal?
What will be an ideal response?
The appropriate monetary policy response to a situation with deficient financial liquidity
A) an open market sale of government bonds. B) to do nothing. C) an open market purchase of government bonds. D) to increase reserve requirements.
A tax that reduces economic efficiency is always bad policy
a. True b. False Indicate whether the statement is true or false