Government-imposed limits on price movements are likely to
a. increase economic efficiency.
b. decrease economic efficiency.
c. leave economic efficiency unchanged.
d. promote economic growth in the economy.
b
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When a firm is able to engage in perfect price discrimination, its marginal revenue curve
A) lies below its demand curve. B) is the same as its demand curve. C) lies above its demand curve. D) is the same as its supply curve. E) is undefined because it does not exist.
The quantity theory of money states that if the velocity of money is stable or at least predictable, then: a. the quantity of money in circulation determines real GDP in the short run
b. the quantity of money in circulation determines aggregate spending. c. the quantity of money in circulation determines both real GDP and the price level in the long run. d. the quantity of money in circulation determines only the price level in the long run. e. the quantity of money in circulation determines the potential output in the long run.
When a bank repays a _________________ loan, the Fed _____________________ the bank's reserve account
A) overnight; subtracts the repayment from B) overnight; adds the repayment to C) discount; adds the repayment to D) discount; subtracts the repayment from
If the interest elasticity of money demand is -0.1, by what percent does money demand change if the nominal interest rate rises from 2% to 3%?
A. -5% B. 0% C. -0.1% D. 5%