A country with a fixed exchange rate faces:
a. no monetary policy constraints in the long run.
b. no monetary policy constraints in the short run.
c. no monetary policy constraints in the long run and the short run.
d. monetary policy constraints in the long run and the short run
Ans: d. monetary policy constraints in the long run and the short run
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For every dollar's worth of government securities the Fed sells, the money supply
A) rises by more than $1. B) rises by less than $1. C) falls by less than $1. D) falls by more than $1.
A monopolist can earn a positive economic profit, even in the long run
a. True b. False Indicate whether the statement is true or false
The deadweight loss from a tax of $x per unit will be smallest in a market
a. in which demand is elastic and supply is inelastic. b. in which demand is inelastic and supply is elastic. c. in which demand is inelastic and supply is inelastic. d. None of the above are correct; we need to know the value of x in order to determine the answer.
A decrease in population would shift the demand curve to the left.
Answer the following statement true (T) or false (F)