The fastest-growing component of U.S. personal consumption is services
a. True
b. False
A
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An increase in the nominal interest rate increases the quantity of credit card services because
A) bank profits go up. B) of intertemporal substitution. C) the opportunity cost of making transactions with money has risen. D) the substitution effect is greater than the income effect.
Suppose the economy is in long-run equilibrium. In a short span of time, there is a large emigration of skilled workers, a major depletion of oil fields, and a major new regulation limiting electricity production. In the short run, we would expect
a) the price level to rise and real GDP to fall. b) the price level and real GDP both to rise. c) the price level to fall and real GDP to rise. d) the price level and real GDP both to stay the same.
The view Dambisa Moyo promotes in her book "Dead Aid" is:
A. so much corruption and embezzlement exists around aid money, it causes more disruption and inefficiency than it helps. B. the intended recipients of the money rarely receive it and, when they do, oftentimes don't know how to use it efficiently to actually progress. C. aid distorts the marketplace, actually hurting local economies. D. None of these statements is true.
If profits in a monopolistically competitive market are positive, we can conclude that:
A. price is equal to average cost. B. price is greater than average cost C. the market is in long-run equilibrium. D. price is less than average cost.