Refer to the above figure. Suppose the economy is at point B and the central bank adopts expansionary monetary policy. In the short run, this will result in
A) the economy moving towards point A.
B) the economy staying at point B.
C) the economy moving towards point C.
D) an outcome that cannot be predicted, as not enough information is given.
A
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Which of the following statements is true?
A) Empirical arguments can be supported without the use of data. B) Using a large data set will strengthen the force of an empirical argument C) Using fewer observations will strengthen the force of an empirical argument. D) The number of observations used does not affect the strength of an empirical argument.
Members of the Federal Reserve Board of Governors can set monetary policy in relative independence of political pressures because
A) monetary policy is too complex to be understood by the general public. B) their authority derives from the Constitution rather than popular election. C) they are not allowed to belong to any political party. D) they hold their positions for fourteen-year terms.
The figure above shows the situation facing Smart Digit, Inc, a firm in monopolistic competition that produces calculators. What is the firm's profit-maximizing price?
A) $12 B) $10 C) $8 D) $4
The productivity of the employees of a bakery is reduced because of the excessive noise coming from a next door car repair shop. This is an example of
A) synergy. B) a positive externality. C) a negative externality. D) happy coexistence.