On any given day, a salesman can earn $0 with a 30% probability, $100 with a 20% probability, or $300 with a 50% probability. His expected earnings equal
A) $0.
B) $100.
C) $150.
D) $170.
D
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If inflation does not adjust rapidly in the short run, then when the Federal Reserve decreases the nominal interest rate, the real interest rate in the short run will ________.
A. be determined by saving and investment decisions. B. decrease C. increase D. not change
The quantity of money demanded will increase as interest rates increase
Indicate whether the statement is true or false
Refer to the figure above. What is the change in consumer surplus when the market changes from perfect competition to a monopoly?
A) The consumer surplus increases by 30 units. B) The consumer surplus decreases by 45 units. C) The consumer surplus increases by 90 units. D) The consumer surplus decreases by 135 units.
In the figure above, the curve going through point A represents
A) an upward-sloping demand curve. B) the line of equality. C) the wage curve. D) the Lorenz curve.