Requiring cars in Los Angeles to reduce pollution by the same amount as cars in Topeka is inefficient
a. True
b. False
Indicate whether the statement is true or false
True
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The period from 1983 to 1990 was characterized by
a. decreasing budget deficits and increasing trade surpluses. b. persistently high inflation. c. below average rates of real GDP growth. d. consistent growth of real GDP and decreasing rates of inflation.
Which of the following would most likely cause a nation's currency to depreciate?
a. an increase in exports coupled with a decline in imports b. a slower inflation rate than those of its trading partners c. lower domestic real interest rates d. lower real interest rates abroad
Given an upward-sloping aggregate supply curve, which of the following is most likely to occur if the Fed pursues restrictive monetary policy, ceteris paribus?
A. The equilibrium price level and output will both decrease. B. The equilibrium price level and output will both increase. C. The equilibrium price level will decrease but output will stay the same. D. The equilibrium output will decrease but the price level will stay the same.
Explain what is meant by liquidity preference
What will be an ideal response?