Moving upward along an LM curve, ________ quantity of real money balances is equally demanded as higher real incomes are accompanied by ________ interest rates
A) an increasing, rising
B) an increasing, falling
C) a decreasing, falling
D) a constant, rising
E) a constant, falling
D
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The group responsible for deciding on monetary policy is the
A) Federal Advisory Council. B) Board of Governors only. C) Federal Open Market Committee. D) group of 12 Federal Reserve Bank presidents only.
Surplus value that is lost because something is keeping the market from functioning as well as it can is called
A) a tax. B) a subsidy. C) rent seeking. D) deadweight loss.
A contract may remain incomplete because the expected benefits of greater completeness do not cover the costs of drafting it
Indicate whether the statement is true or false
Deadweight loss measures the decrease in total surplus that results from a tariff or quota
a. True b. False Indicate whether the statement is true or false