When the price level decreases:
A. The demand for money falls and the interest rate falls
B. Holders of financial assets with fixed money values decrease their spending
C. Holders of financial assets with fixed money values have less purchasing power
D. There is a decrease in consumer spending that is sensitive to changes in interest rates
A. The demand for money falls and the interest rate falls
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It is impossible to figure out the "true" or "final" cost of getting an education at public schools because
A) no one has an incentive to keep accurate figures. B) an education at any public school is in most, if not all cases, a free good. C) an education is necessary. D) things in themselves have no cost.
What is a monopolist, and what is required for a monopolist to earn profits in the long run?
What will be an ideal response?
Under the natural rate hypothesis, expansionary monetary and fiscal policies can at best produce a:
a. permanent change in the unemployment rate. b. short-run change in the unemployment rate. c. permanent change in the inflation rate. d. short-run change in the long-run Phillips curve.
The problem with using foreign exchange rates to convert one country's GDP into dollars is that
A. exchange rates do not reflect differences in inflation rates. B. not all goods and services are sold on world markets. C. the dollar has been losing value over the last twenty years. D. the values of currencies are not comparable.