If interest rates are to remain constant, the money supply should change:
a. in the opposite direction to a change in aggregate demand.
b. in the same direction as a change in money demand
c. only when investment changes.
d. only when the demand for money decreases.
e. only when the inflation rate changes.
b
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A sales tax imposed on tires ________ consumer surplus and ________ producer surplus
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; does not change
When tastes over current and future consumption take the Cobb-Douglas form, interest rates have no impact on savings when income is earned in the current period but not in the future.
Answer the following statement true (T) or false (F)
Which of the following is NOT a necessary condition for oligopoly?
A) barriers to entry B) strategic dependence of firms C) differentiated products D) either a small number of firms or market dominance by a small number of firms
Compare/contrast the Nasdaq Composite Index with the Dow Jones Industrial Average.
What will be an ideal response?