An increase in the expected inflation rate causes the supply of bonds to ________ and the supply curve to shift to the ________, everything else held constant
A) increase; left
B) increase; right
C) decrease; left
D) decrease; right
B
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In the real world, contractionary monetary policy would be used to
A) combat a recession. B) reduce the rate of inflation. C) increase nominal GDP. D) increase long-run aggregate supply.
The union would have a better bargaining position in the negotiations if
a. The firm can hire individual workers at a lower wage b. The union has low wage workers who cannot afford to be off work c. The union has a strike fund to pay workers during work stoppage actions d. The firm can easily replace workers with machinery
Which of the following is a violation of the antitrust laws?
a. A firm discussing/fixing price with its competitors b. Making arrangements to stay out each other's markets c. Merging with the competitor to eliminate competition d. All of the above are violations
The opportunity cost of owner-provided labor is the
A) wage rate paid to the owner. B) explicit part of the wage rate paid to the owner. C) salary the owner could have made if she worked at her best alternative job. D) profit after all of the bills have been paid.