The quantity theory of money states that increases in the money supply result in proportional increases in real GDP
a. True
b. False
Indicate whether the statement is true or false
False
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What will be an ideal response?
If you buy a put option on treasury futures at 110, and at expiration the market price is 115, the ________ will ________ exercised
A) call; be B) put; be C) call; not be D) put; not be
Which of the following statements is NOT true?
A) Unemployment in the US economy represents an excess demand for labor. B) A surplus may be reduced by shifting the demand curve rightward. C) A surplus may be reduced by shifting both the supply and demand curves. D) A shortage may be reduced by shifting the supply rightward.
Realization of gains from trade, entrepreneurial discovery, and investment are largely dependent on
a. competitive elections and political democracy. b. the presence of institutions and policies consistent with economic freedom. c. the use of tariffs and quotas to protect domestic businesses from competition with foreigners. d. the use of government planning to direct investments into worthwhile projects.