An increase in the money supply, ceteris paribus, usually:
A. Increases the interest rate and increases aggregate demand
B. Increases the interest rate and decreases aggregate demand
C. Decreases the interest rate and increases aggregate demand
D. Decreases the interest rate and decreases aggregate demand
C. Decreases the interest rate and increases aggregate demand
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The case of Airbus, an airplane manufacturing consortium in Europe, which receives large subsidies from several European countries, best exemplifies which rationale for protectionist policies?
A) helping domestic firms establish monopolies in world markets B) shielding workers from foreign competition C) protecting infant industries D) prevention of dumping in local markets
When something is indexed:
A. its value is automatically adjusted in proportion to the cost of living. B. it is expressed as nominal value multiplied by price index. C. its real value is converted into nominal terms for comparison. D. its relative rank in consumption items is compensated for relative to its cost.
The Federal funds rate and:
a. Discount rate are inversely related b. Prime interest rate are positively related c. Velocity of money are positively related d. Reserve ratio are inversely related
In a monopolistically competitive market, there:
A. are many firms selling an identical product. B. is only one firm that sells many similar yet slightly different products. C. are many firms that have slight control over the price they charge for their product. D. are substantial barriers to entry.