An increase in money growth, holding all other factors constant, will cause
A) a reduction in seignorage.
B) an increase in seignorage.
C) no change in seignorage.
D) an ambiguous effect on seignorage.
B
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An economic expansion rather than a recession occurs
A) when the federal budget is balanced. B) when the unemployment rate falls below 5 percent. C) when growth in real GDP is positive. D) when the unemployment rate is not changing.
If the required reserve ratio was 1, the demand deposit expansion multiplier would be
A) 0. B) 1. C) 1.2. D) 5.
A monopolist faces the (inverse) demand for its product: p = 50 - 2Q. The monopolist has a marginal cost of 10/unit and a fixed cost given by F
a. Assume that F is sufficiently small such that the monopolist produces a strictly positive level of output. What is the profit-maximizing price and quantity? b. Compute the maximum profit for the monopolist in terms of F. c. For what values of F will the monopolists profit be negative?
Regarding the number of discouraged workers,
a. the Bureau of Labor Statistics follows rather loose criteria to classify them. b. they are included in the official unemployment measure. c. there is universal agreement among economists that they should be counted as unemployed d. they are also known as involuntary part time workers. e. no one knows for sure how many are there.