The figure above illustrates the effect of an increased rate of money supply growth at time period T0. From the figure, one can conclude that the
A) liquidity effect is smaller than the expected inflation effect and interest rates adjust quickly to changes in expected inflation.
B) liquidity effect is larger than the expected inflation effect and interest rates adjust quickly to changes in expected inflation.
C) liquidity effect is larger than the expected inflation effect and interest rates adjust slowly to changes in expected inflation.
D) liquidity effect is smaller than the expected inflation effect and interest rates adjust slowly to changes in expected inflation.
C
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Leaving out spending on consumer durables, the LCH and the PIH strengthens the case for policy ________ and the essential ________ of the private economy
A) rules, stability B) rules, instability C) activism, stability D) activism, instability
When the commons are converted into privately owned resources, _____
a. utilization is increased, and benefits to the society decline b. utilization is increased, and the benefits to the society also increase c. utilization is decreased, and the benefits to the society also decrease d. utilization remains unchanged, and the benefits to the society increase e. utilization is decreased, and the benefits to the society increase
According to the law of demand an increase in the price of gasoline will:
A. decrease the demand for gasoline. B. decrease the quantity demanded of gasoline, other things constant. C. increase the quantity demanded of gasoline, other things constant. D. increase the demand for gasoline.
Under a policy of average-cost pricing, a monopolist must charge the price at which its ________ cost curve intersects its ________ curve.
A. marginal; demand B. average variable; demand C. marginal; marginal revenue D. average; demand