According to countercyclical monetary policy advocates, if the European Central Bank pursues an expansionary monetary policy, ________.
A) the interest rate will rise
B) the unemployment rate will fall
C) its labor supply will likely fall
D) the price level in will fall
Answer: B) the unemployment rate will fall
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A monopolist will earn economic profits as long as his price exceeds
a. marginal revenue. b. average fixed cost. c. average variable cost. d. average total cost.
Which of the following describes a situation in which the person is hurt by inflation?
A) a person who lends money during a period when inflation is over-predicted B) a person who borrows money during a period when inflation is under-predicted C) a person paid a fixed income during an inflationary period D) a retiree whose pension is adjusted for inflation
If demand curve D2 represents a monopolistic competitor and demand curve D3 represents a monopoly, then
A. the monopolist has a more elastic demand curve than the monopolistic competitor.
B. the monopolistic competitor has a more elastic demand curve than the monopolist.
C. the monopolist and the monopolistic competitor have identical elasticity in their demand curves.
D. None of these choices are true.
The demand curve for investment in the economy as a function of interest rates is:
A. vertical. B. horizontal. C. upward sloping. D. downward sloping.