When the nominal interest rate is not constant, an increase in the growth rate of the money supply ________ the inflation rate, and ________ the debt-to-GDP ratio
A) increases; increases
B) increases; decreases
C) increases; has an ambiguous effect on
D) decreases; increases
C
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Which of the following is NOT a normative statement?
A) People buy more of a good or service when its price falls. B) The distribution of income is fair. C) The government ought to provide health care to everyone. D) Corporations should be more socially responsible.
Which of the following is TRUE?
A) Technological efficiency occurs if the maximum feasible amount of output is achieved from a given quantity of inputs. B) Technological efficiency depends on the relative cost of the resources used in production. C) If production is technologically efficient, then it must be economically efficient. D) All of the above answers are correct.
Joe works for an environmental agency. Every day he chooses to fill his reusable water bottle and bring it to work instead of bringing in a plastic disposable water bottle each day. Joe most likely derives utility from:
A. the taste of water from his reusable water bottle. B. the knowledge that he is doing something good for the environment by not using plastic water bottles. C. the knowledge that others in his firm observe his environmentally-friendly choice of water bottle. D. Joe likely derives utility from all three of these sources.
The excess capacity theorem states that society would clearly benefit from a reduction in the number of monopolistic competitors
a. True b. False Indicate whether the statement is true or false