When quantity supplied equals quantity demanded,
A. there is disequilibrium.
B. the market is cleared.
C. there is excess quantity demanded.
D. there is excess quantity supplied.
B. the market is cleared.
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Depository institution create liquidity when they
A) buy assets that are liquid. B) borrow short and lend long. C) have liabilities that are illiquid. D) borrow long and lend short.
Under the assumption of rational expectations, government fiscal and monetary policy changes are effective in the short run
A) all of the time. B) only when the short-run aggregate supply curve is the same as the long-run aggregate supply curve. C) only when the policy changes leave the position of the aggregate demand curve unaffected. D) only when the policy changes are unanticipated.
Currency devaluations help suppliers because they make exports ________ expensive in the _____________ currency
a. Less; domestic b. Less; foreign c. More; domestic d. More; foreign
To be a positive economic statement, an assertion must be true
a. True b. False Indicate whether the statement is true or false