The vertical distance between the total cost curve and the total variable cost curve ________ as output increases and the vertical distance between the average total cost curve and average variable cost curve ________ as output increases
A) is constant; decreases
B) decreases; is constant
C) increases; decreases
D) decreases; increases
E) decreases; decreases
A
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If the Fed sells government securities, in the short run the nominal interest rate ________ and the real interest rate ________
A) rises; does not change B) rises; rises C) does not change; rises D) falls; falls E) rises; falls
When goods and services are produced at the lowest possible cost, ________ occurs
A) efficient central planning B) equity C) productive efficiency D) allocative efficiency
The constant growth rate rule for money, as initially proposed by Milton Friedman, has been adjusted ________
A) to take the problem of moral hazard in account B) to account for the role played by adaptive expectations in policy formation C) for the difference between real and nominal economic variables D) to allow for possible short-run movements in velocity
As the price of a Giffen good falls, the consumer will
A) purchase more units. B) purchase fewer units. C) not change the amount purchased. D) There is not enough information to answer this question.