Suppose the economy is operating on the LM curve but not on the IS curve. Given this information, we know that
A) the goods market is in equilibrium and the money market is not in equilibrium.
B) the money market and bond markets are in equilibrium and the goods market is not in equilibrium.
C) the money market and goods market are in equilibrium and the bond market is not in equilibrium.
D) the money, bond and goods markets are all in equilibrium.
E) neither the money, bond, nor goods markets are in equilibrium.
B
You might also like to view...
Consumers and firms are known as price takers only if
A) no market exists to determine the equilibrium price. B) they can set the market price. C) they cannot unilaterally affect the market price. D) excess demand exists.
A . What are foreign exchange reserves? b. What actions can a government take if it exhausts its foreign exchange reserves?
Find the cost effective allocation of abatement across the two sources that also satisfies the 40 percent aggregate abatement level. Support with calculations.
Suppose that there are only two stationary sources in a given air quality region. The first source has been in existence for several years, while the second source is new. The following functions represent marginal abatement costs (MAC) for each polluting source: MACEX = 10.0 + 0.7A EX, MACN = 9.2 + 0.5A N, whereAEX is the percentage abatement level for the existing source, and AN is the percentage abatement level for the new source. Assume that the aggregate abatement standard (i.e., for the region as a whole) is set at 40 percent and that the two firms’ current abatement levels areAEX = 10 and AN = 30.
The northwest boundary of the set of all portfolios is
a. the portfolio that maximizes return. b. the efficient set. c. the efficient portfolio. d. the portfolio that minimizes risk.