Nonconventional monetary policy attempts to reduce financial frictions by ________
A) correcting the shortage of liquidity that has made it costly for businesses to invest
B) purchasing long-term assets, which raises their price and reduces the credit spread
C) reducing the expected future short-term interest rate
D) all of the above
E) none of the above
D
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Worker surplus can be measured as an area on the market labor supply curve if worker tastes are quasilinear in leisure.
Answer the following statement true (T) or false (F)
According to the above table, Alpha has comparative advantage in producing
A) pizzas. B) donuts. C) both pizzas and donuts. D) neither pizzas nor donuts.
Copyrights and patents are examples of barriers to entry that give firms monopoly pricing powers
a. True b. False Indicate whether the statement is true or false
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.