Which of the following elements are necessary for an expansionary monetary policy to be successful?
a. the Fed decreasing money supply; banks sitting on reserves; firms refusing to borrow from banks
b. the Fed decreasing money supply; banks using reserves for loans; firms refusing to borrow from banks
c. the Fed increasing money supply; banks sitting on reserves; firms borrowing from banks
d. the Fed increasing money supply; banks using reserves for loans; firms borrowing from banks
d. the Fed increasing money supply; banks using reserves for loans; firms borrowing from banks
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A sole proprietorship is the type of business that has ________ government rules and regulations affecting it
A) the fewest B) the most C) no D) only federal
Everything else held constant, changes in the interest rate affect planned investment spending and hence the equilibrium level of output, but this change in investment spending
A) merely causes a movement along the IS curve and not a shift. B) is crowded out by higher taxes. C) is crowded out by higher government spending. D) is crowded out by lower consumer expenditures.
In principle, can a monopolist hold its monopoly power in the long run? Explain
What will be an ideal response?
Which of the following statements is not correct?
a. Reducing taxes on interest income might encourage people to save more. b. Reducing taxes on interest income might reduce saving. c. A price increase will create income and substitution effects that will both always work to reduce consumption of the good. d. Utility is maximized when the marginal rate of substitution between any two goods equals the relative prices of the two goods.