An increase in the real interest rate would cause an increase in the real demand for money
A) no matter what the change in expected inflation.
B) if expected inflation fell by less than the rise in the real interest rate.
C) if expected inflation fell by the same amount as the rise in the real interest rate.
D) if expected inflation fell by more than the rise in the real interest rate.
D
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Lessons about the nature of economic processes will likely emerge from the analysis of transitional economies
a. True b. False
The development of new technology typically
a. shifts the supply curve to the right b. reduces profits c. results in a downward movement along a supply curve d. increases costs of production e. shifts the demand curve to the right
An input combination is an interior choice if and only if:
A. it lies below the isocost line. B. uses at least a little bit of every input. C. lies on an isoquant. D. satisfies the tangency condition.
In terms of the Phillips curve, the experience of the 1970s indicates that macro-policy
a. can permanently reduce unemployment if we are willing to tolerate higher inflation. b. can reduce unemployment in the long run if we are willing to tolerate higher inflation. c. may be able to reduce unemployment but cannot retard inflation. d. may be able to reduce unemployment in the short run, but there is little evidence that expansionary policies can reduce unemployment permanently.