According to the monetarists
A. the supply of money changes in response to changes in the levels of real output and prices.
B. changes in the velocity of money are more important than changes in the money supply in causing the level of economic activity to change.
C. an expansionary fiscal policy will lower interest rates and thereby tend to over stimulate investment and consumption.
D. changes in the money supply are the primary cause of changes in the price level.
D. changes in the money supply are the primary cause of changes in the price level.
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A free rider problem is a problem associated with
A) public goods. B) common resources. C) private goods. D) natural monopolies.
The table below shows data (in millions) for Sun Trust Banks in September 2007 and September 2008
2007 2008 Loans $83 $78 Reserves $4 $5 Deposits $114 $95 The data show that Sun Trust A) increased its reserve ratio to 5.3 percent over the 12 months. B) increased its reserve ratio to 6.4 percent over the 12 months. C) has fewer excess reserves in 2008. D) faced a higher currency drain ratio in 2008.
If the demand for a product increases and the supply of the same product increases, the equilibrium price will increase
Indicate whether the statement is true or false
If the government charged a tax on monopolists equal to, say, 75 percent of their economic profits, what would happen to the level of output the firm would produce? What about the price? Explain