If the Fed were to increase the money supply, inflation would increase and unemployment would decrease in the short run
a. True
b. False
Indicate whether the statement is true or false
True
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To an economist, risky options:
A) are always bad options. B) are always good options. C) have costs and benefits fixed in advance. D) do not have costs and benefits fixed in advance.
The IMF mostly receives its funds from:
a. the subscription fees paid by the member nations. b. selling of bonds. c. the loans given by the World Bank. d. the central banks of the major industrialized nations. e. the gold reserves available with the Fed.
According to the text, why would firms in an industry follow the price leadership of another firm?
a. fear of retribution from the price leader if they don't follow b. smaller firms do not have the resources to determine optimal price c. the price chosen by the leading firm is the optimal one for all d. profit will be distributed in accordance with firms' market share e. every firm in the industry has confidence the leading firm will act for the benefit of all firms
If regulators required firms in monopolistically competitive markets to set price equal to marginal cost,
a. firms would most likely experience economic losses. b. firms would also operate at their efficient scale. c. new firms would likely to enter the market. d. the most efficient firms would not likely to be affected.