Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the main factor that will readjust the economy is the:
a. Real risk-free interest rate.
b. Real GDP.
c. Nominal and real exchange rates.
d. Money supply.
e. Real wage rate.
.A
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Suppose that when the price of broccoli is $4 per pound, buyers wish to buy 500 pounds per day and sellers wish to sell 800 pounds per day. In this case:
A. excess supply will lead the price of broccoli to fall B. excess demand will lead the price of broccoli to fall C. excess demand will lead the price of broccoli to rise D. excess supply will lead the price of broccoli to rise
How does an increase in the short-term interest rate affect peoples' desire to hold real money balances?
A) People will hold more money to compensate for the higher interest rate. B) People will hold more money in anticipation of higher inflation. C) People will hold less money since they would be sacrificing more interest by holding money. D) People will hold less money since it is not worth as much.
Which of the following is true?
a. Employers who discriminate against women will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity). b. On average, the number of hours worked per year by women in the labor force is greater than the hours worked by men in the labor force. c. The female/male earnings ratio is substantially higher for never married persons than for those married with a spouse present. d. As the proportion of women preparing for careers as professionals has increased in recent decades, the earnings of women have declined relative to those for men.
Inspired by the beautiful private tennis courts of some of its residents, the town of Lakeland built a pristine tennis park with five courts. Within three years the nets had been torn down, trash was piled everywhere, and graffiti was written on the courts. This story demonstrates the concept of the ______.
a. lemon problem b. tragedy of the commons c. moral hazard d. adverse selection