One reason why, in reality, prices are sticky in the short run is because
A) there are often costs to firms from changing prices.
B) purely competitive firms have no control over the price of their product and therefore cannot change the price, even if the market warrants a price change.
C) in the short run, the cost to changing prices always outweighs any benefit.
D) firms do not have time to react to macroeconomic shocks in the short run.
A
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If the growth rate of population is greater than a nation's growth rate of real GDP, then its real GDP per person
A) falls. B) rises. C) does not change. D) might rise, fall, or not change. E) cannot be measured.
If you win $1 million in a lottery and are paid in installments,
a. the future value of these payments is $1 million b. the present value of these payments equals $1 million if the interest rate is zero c. the present value of these payments equals $1 million if the interest rate is 10 percent annually d. the present value of the payments exceeds $1 million if the interest rate is positive e. the future value of the payments is less than $1 million if the interest rate is negative
A decrease in savings deposits would ____ M1 and ____ M2. a. increase; increase
b. not change; increase. c. decrease; decrease. d. not change; decrease.
A bank may lend an amount equal to its
A. Total assets. B. Total reserves. C. Required reserves. D. Excess reserves.