According to the household liquidity effect, an expansionary monetary policy causes a ________ in the value of households' financial assets, causing consumer durable expenditure to ________
A) decline; rise
B) rise; rise
C) rise; fall
D) decline; fall
B
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The typical firm in the US economy
a. has some degree of market power. b. sells its product for a price that is equal to the marginal cost of producing the last unit. c. is perfectly competitive. d. is a monopoly.
"Does the analysis create an accurate perception of the work?" is a question answered by _____.
A. reliability B. validity C. acceptability D. usefulness
Economic advisers who fear that the economy is growing too rapidly would recommend that the government decrease spending and/or increase taxes.
Answer the following statement true (T) or false (F)
Related to the Economics in Practice on p. 51: The Amazon Kindle and the electronic textbooks available for the Kindle are complementary goods. Electronic textbooks and traditional, hard-copy textbooks are substitute products. If the price of the Kindle decreases
A. demand for the Kindle increases and the quantity of electronic textbooks demanded increases. B. the quantity of Kindles demanded increases and the quantity of electronic textbooks demanded increases. C. demand for the Kindle increases and demand for traditional, hard-copy textbooks decreases. D. the quantity of Kindles demanded increases and demand for electronic textbooks increases.