The crude quantity theory of money and the sophisticated quantity theory of money are approximately similar
A. in times of deflation.
B. in times of high unemployment.
C. in times of full employment.
D. in no set of circumstances.
C. in times of full employment.
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Suppose that a pure monopoly calculates that at its present output level, marginal revenue is $1 and marginal cost is $2. The monopoly could maximize profits or minimize losses by ________.
A. increasing price and decreasing output B. increasing price and increasing output C. leaving price unchanged and decreasing output D. decreasing price and leaving output unchanged
Changes in the growth rate of real GDP per capita do not reflect which of the following?
a. changes in the total production of final goods in the economy b. changes in the production of final services in the economy c. changes in the distribution of income d. changes in the size of the population
When an economy experiences a zero rate of inflation, which of the following statements is definitely true?
A. Real incomes improve. B. There is no redistribution of income and wealth because of inflation. C. Relative prices do not change. D. Real incomes are affected by money illusion. E. The level of uncertainty increases in the economy
When bank deposits increase from $1 million to $2 million, bank reserves increase from $100,000 to $200,000. If banks hold no excess reserves, then the required reserve ratio is
What will be an ideal response?