The steeper is the IS curve,
A) the more effective is monetary policy.
B) the less effective is monetary policy.
C) the effectiveness of monetary policy does not change.
D) a given change in the money supply will have a greater effect on output.
A
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In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is an inferior good
a. The population increases and productivity increases. b. Income increases and the price of inputs decrease. c. The number of firms in the market decreases and income increases. d. Consumer preference increases and the price of a complement decreases. e. The price of a substitute in consumption decreases and the price of a substitute in production decreases.
Capital flows between countries are smaller than in past decades in absolute terms
Indicate whether the statement is true or false
An oral auction
a. is also called an English auction b. is where bidders submit increasing bids until all but one remains c. is where the sole remaining bidder wins and pays his winning bid d. all of the above
In which of the following examples is excess burden not present?
a. Harriet decides to give up her Saturday hours at her law office after income tax rates rise. b. Rudolf still smokes three packs a day even after the excise tax on cigarettes rose 10 cents a pack. c. Wilma reduced the automatic payroll deduction to her savings account after the tax on interest was imposed. d. Harper decided to take a vacation in Bermuda rather than invest in stocks after the tax rate on capital gains was increased.