The idea that firms incur actual costs when they change prices is known as _____. Firms in countries with lower inflation rates will change price _____ frequently compared to those countries where inflation is higher
Fill in the blank(s) with correct word
menu costs, less
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Based on the model of the money market, when real GDP increases, the equilibrium interest rate should
A) stay the same. B) increase. C) decrease. D) increase to the same extent that the supply of money increases.
When did major currencies begin floating against each other, ending the Bretton Woods system?
What will be an ideal response?
A manufacturer produces 400 units when the market price is $10 per unit and produces 600 units when the market price is $12 per unit. Using the midpoint method, for this range of prices, the price elasticity of supply is about
a. 0.45. b. 2.0. c. 2.2. d. 200.
Because an increase in the nominal interest rate raises the opportunity costs of holding money, the money demand curve:
A. shifts to the right. B. slopes downward. C. shifts to the left. D. slopes upward.