The real seignorage collected by the government in an all-currency economy is the product of
A) the rate of inflation and the real supply of government bonds.
B) the rate of inflation and the real money supply.
C) the debt—GDP ratio and the real money supply.
D) the debt—GDP ratio and the rate of inflation.
B
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Suppose a plaintiff hires a lawyer to represent her in a court case. She agrees to pay the lawyer a wage per hour
She knows precisely what the lawyer should do and how long each activity should take, and she can verify that the lawyer has correctly completed each activity. She can terminate the contract at any time. With this contract, A) the lawyer bears all the risk. B) the risk is shared by the lawyer and the plaintiff. C) production efficiency can be achieved. D) production efficiency is impossible.
The consumer price index (CPI) includes only a market basket of goods and services purchased by the typical urban consumer
a. True b. False Indicate whether the statement is true or false
Assume the central bank decides to raise the discount rate. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with supply of real credit shifting to the right. b. Start the analysis in the real goods market with aggregate demand shifting to the left. c. Start the analysis in the real credit market with demand for real credit shifting to the left. d. Start the analysis in the real credit market with demand for real credit shifting to the right. e. Start the analysis in the real credit market with supply of real credit shifting to the left.
Which of the following statements is true?
A) As an economy experiences growth in GDP, the rate of unemployment is expected to decrease. B) As an economy experiences growth in GDP, the rate of unemployment is expected to increase. C) The unemployment rate in a country always remains constant. D) The unemployment rate in a country is not correlated with the level of economic activity in the country.