Franco Modigliani has found that an expansionary monetary policy can cause stock market prices to ________ and consumption to ________

A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase


A

Economics

You might also like to view...

Day care is provided by a competitive constant-cost industry at a price of $40 per child per day. The government wants to increase the availability of day care and thus chooses to build and operate 50 new day care centers across the nation.

(i) In the short run, what happens to the price of day care? Does the total amount of day care provided increase in the short run? What happens to the profits of day care centers? (ii) In the long run, what happens to the size of the day care industry? What happens to the price of day care and the profits of day care centers? Does the total amount of day care provided increase in the long run?

Economics

In one hour John can produce 20 loaves of bread or 8 cakes. In one hour Phyllis can produce 30 loaves of bread or 15 cakes. Which of the following statements is true?

A) Phyllis has a comparative advantage in producing bread. B) John has a comparative advantage in producing cakes. C) Phyllis has an absolute advantage in both goods. D) John has an absolute advantage in both goods. E) Phyllis has a comparative advantage in producing both cakes and bread.

Economics

Suppose a monopolist and a competitive price-taker firm have the same cost curves. The monopoly firm would

a. charge a lower price than the competitive price-taker firm. b. charge a higher price than the competitive price-taker firm. c. charge the same price as the competitive price-taker firm. d. refuse to operate in the short run unless an economic profit could be made. e. refuse to operate in the short run if an economic loss was present.

Economics

When quantity demanded is greater than quantity supplied

A. price will fall to its equilibrium price. B. price will rise to its equilibrium price. C. price may rise, fall, or stay the same, depending on a variety of factors.

Economics