How is money market equilibrium determined in the short run?
What will be an ideal response?
In the short run, the nominal interest rate adjusts to restore equilibrium to the money market. When the quantity of money demanded equals the quantity supplied, the nominal interest rate is at its equilibrium level.
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Which of the following statements is true of the cross-price elasticity of demand?
A) The cross-price elasticity of demand between substitutes is zero. B) The cross-price elasticity of demand between complements is zero. C) The cross-price elasticity of demand between substitutes is negative. D) The cross-price elasticity of demand between complements is negative.
Given the total cost and total revenue curves in the above figure, what are the output levels at which the perfect competitor will incur economic losses?
A) below 80,000 bushels B) from 30,000 to 80,000 bushels C) below 30,000 bushels and over 80,000 bushels D) at 30,000 bushels and at 80,000 bushels
Purchasing a season pass to the local symphony
A) is an example of first degree price discrimination. B) is an example of second degree price discrimination. C) is an example of third degree price discrimination. D) All of the above.
An employer faces a minimum wage control where it cannot pay its workers any less than $10.25 an hour. The employer knows that the workers value the jobs and are willing to work even at much less. The employer decides to offer them the minimum wage, but successfully stops other sellers of work uniform from sell uniforms to its workers so that he can charge more for the ones he sells. This is an
example of a. Tying b. Bundling c. Exclusion d. Fraud