In the quantity theory of money:
a. the price level is a function of the supply of money.
b. the supply of money is a function of the price level.
c. the money supply and the price level are inversely related.
d. the money supply is controlled by the government.
a
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Asymmetric information exists when
A. both parties to an exchange have all relevant facts about that exchange. B. a good that is either nonrivalrous or nonexcludable is being sold on a market. C. the two parties to an exchange differ in what they know about the good being exchanged. D. neither party to an exchange is knowledgeable about the quality of the good being exchanged.
Assuming free trade between countries, exchange rates will change so that goods cost the same in all countries. This concept is known as the
a. long-run equilibrium theory. b. exchange rate equalization theory. c. interest rate parity theory. d. purchasing power parity theory.
An increase in the reserve ratio
A. increases the size of the income multiplier. B. decreases the size of the income multiplier. C. increases the size of the deposit expansion multiplier. D. decreases the size of the deposit expansion multiplier.
____________is a market structure in which no close substitute products are available
Fill in the blank(s) with the appropriate word(s).