In the long run, monopolistically competitive firms become perfectly competitive firms.
Answer the following statement true (T) or false (F)
False
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Which of the following is NOT a contractual savings institution?
A) a life insurance company B) a pension fund C) a savings and loan association D) a fire and casualty insurance company
Suppose a consumer's expected utility function given two possible states of nature A and B can be expressed in terms of consumption of food, F, in both states as U(FA, FB) = [0.6 × ln(FA)] + [0.4 × ln(FB)]. For this utility function, MUA is (0.6/FA) and MUB is (0.4/FB). Without insurance, the consumer can consume 200 in state A but only 50 in state B. The consumer can purchase insurance at a premium of 50 cents per dollar of benefit. What is the value of the insurance she purchases
A. $4.74 B. $4.85 C. $12.67 D. $114.87
How are aggregate supply and stagflation related?
a. Stagflation usually causes an adverse shift in aggregate supply. b. An adverse supply shift usually causes stagflation. c. Stagflation only follows inflation, with no relation to aggregate supply. d. There is no relationship between the two.
If the Federal Reserve increases the supply of money in the market, then bond prices will _____ and interest rates will _____.
a) fall; rise b) rise; fall c) rise; rise d) fall; fall