Which of the following is true?
A. Keynesians advocate decreasing the money supply during economic recessions but increasing the money supply during economic expansions.
B. Monetarists advocate increasing the money supply by a constant rate year after year.
C. Keynesians argue that the crowding-out effect is rather large.
D. Monetarists argue that the crowding-out effect is rather insignificant.
Answer: B
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Bonds with ________ tend to have lower interest rates than bonds with ________
A) high liquidity; low liquidity B) high default risk; low default risk C) longer maturity; shorter maturity D) high tax burdens on their interest; low tax burdens on their interest
If the price of labor falls, we can expect:
a. demand for labor will increase. b. quantity demanded of labor will increase. c. demand for labor will decrease. d. quantity demanded of labor will decrease. e. marginal factor cost to rise in a competitive market.
If consumers switch away from eating margarine at the same time that the number of margarine suppliers increases, then
a. these two effects cancel each other out and there is no change in the margarine market equilibrium b. the demand curve shifts left and the supply curve shifts right c. there is a margarine price increase d. there is an excess demand for margarine e. the equilibrium quantity of margarine must increase
The entry of new firms into a perfectly competitive market shifts the demand curve outward
a. True b. False Indicate whether the statement is true or false