Which of the following is correct with regard to the supply of money?
a. The money supply is inversely related to the interest rate.
b. The money supply is independent of the interest rate.
c. The money supply is positively related to the interest rate with a relatively flat slope.
d. The money supply curve is horizontal.
e. The money supply is positively related to the interest rate with a relatively steep slope.
B
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What are transfer payments, and how do they make their way into the GDP calculation?
What will be an ideal response?
Exhibit 9-7 Monopolist
?
According to the information provided in Exhibit 9-7, if the Rudd Ice Company is a monopoly and is currently charging a price of $6, what would you advise Rudd to do?
A. Stay where he is currently operating because he is charging the profit maximizing price. B. Increase price and decrease output. C. Decrease price and increase output. D. Increase output and hold price constant.
The IMF's approach to structural adjustment usually
a. placed priority on growth-related investments b. eased conditions by providing subsidies for goods consumed by the poor c. aimed to switch production from goods consumed domestically to goods intended for export d. focused on governments switching expenditure from defense spending to job creation e. all of the above
If monetary policy is used to control GDP, there is greater sacrifice of long-run economic growth in pursuing short-run stabilization the ________ is fiscal policy and thus the ________ is the real interest rate
A) tighter, higher B) tighter, lower C) easier, higher D) easier, lower