Whether real seignorage revenue increases when the rate of money growth increases depends on whether
A. the rise in inflation outweighs the decline in real money holdings.
B. the rise in the real supply of currency outweighs the decline in inflation.
C. the rise in inflation ratio outweighs the decline in the real supply of currency.
D. the rise in real money holdings outweighs the decline in inflation.
Answer: A
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An effective price support ________ producers and ________ a deadweight loss
A) has no effect on; does not create B) benefits; creates C) harms; creates D) benefits; does not create E) harms; does not create
Why do some people think that the productivity slowdown since 1973 is just a return to normalcy after fast productivity growth during the previous 25 years?
A) Productivity growth of the previous 25 years was abnormally low. B) The Great Depression and World War II had prevented technological opportunities from being exploited. C) The United States is the only country to face the slowdown, due to poor regulatory decisions. D) The United States has allowed countries like Japan to steal its technological breakthroughs.
Which of the following examples shows a surplus?
a. At $15,000 per automobile, a company produces 1,000 automobiles and has a demand for 3 more. b. At $15,000 per automobile, a company produces 1,000 automobiles and has a demand for 400 more. c. At $15,000 per automobile, a company produces 1,000 automobiles and sells 1,000. d. At $15,000 per automobile, a company produces 1,000 automobiles and sells 700.
When computing gross domestic product, government services are valued at the
A. price consumers pay for them. B. value of the resources used to produce them. C. value of comparable outputs from the private sector. D. value of taxes collected from consumers.