In the simple liquidity preference model, changes to the money supply will have a smaller effect on interest rates the:
A. flatter, more elastic is the money demand curve.
B. flatter, less elastic is the money demand curve.
C. steeper, more elastic is the money demand curve.
D. steeper, less elastic is the money demand curve.
A. flatter, more elastic is the money demand curve.
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Which of the following statements correctly identifies a similarity between monopoly and perfect competition?
A) Entry is restricted in both market structures. B) Price equals marginal cost in both market structures. C) Production is expanded until marginal revenue equals marginal cost in both the market structures. D) Firms face an upward sloping demand curve and a downward sloping marginal revenue curve in both the market structures.
A main reason the federal government may choose to spend would be the:
A. real interest rates decrease. B. real interest rates increase. C. desire to achieve full-employment GDP. D. government expected to earn a large return on its spending.
Import restrictions
A) can protect United States jobs in the protected industry, which increases economic welfare of the country as a whole. B) can protect United States jobs in the protected industry but will also lead to job reductions in other export industries. C) hurt people who work in importing companies, but makes consumers better off. D) cannot protect American jobs in any sector of the economy.
What are the differences and similarities between a depreciation and devaluation of a currency?
What will be an ideal response?