Monetary policy will have a large income effect provided the
A) IS curve is flat.
B) LM curve is steep.
C) IS curve is steep.
D) LM curve is flat.
A
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Why are firms in monopolistic competition unable to make an economic profit in the long run?
What will be an ideal response?
In the labor force, we include
A) hospitalized people. B) unemployed people. C) students, D) people on social security.
Suppose coal is mined at a zero marginal cost and is priced competitively. If the price of coal is growing faster than the interest rate, then coal miners
a. are making positive economic profits. b. will increase the amount of coal left unmined. c. should extract more coal now and less coal in the future. d. will exit the industry in the long run.
Members of the Board of Governors of the Federal Reserve System are appointed for life
a. True b. False Indicate whether the statement is true or false