A major contributing factor to the instability of money demand over the past 25 years is the:
A. introduction of credit cards.
B. introduction of financial instruments that pay higher returns than money but can be used as a means of payment.
C. Fed has changed the way the money aggregates are defined.
D. failure of many savings and loans.
Answer: B
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A rise in the domestic interest rate leads to capital inflows, which make the exchange rate appreciate.
Answer the following statement true (T) or false (F)
A closed shop is a business enterprise in which
A. employees cannot belong to a union when they are employed, and cannot join a union and keep working there. B. employees must belong to the union before they can be employed. C. employees must join the union to maintain employment. D. employees cannot belong to the union when they are hired, but may join the union later and keep their jobs.
Explain why market power leads to a deadweight loss. Is the total deadweight loss from market power in the United States large or small?
What will be an ideal response?
The key to pollution abatement lies in forcing polluters to externalize their pollution costs.
Answer the following statement true (T) or false (F)