Expansionary monetary policy will decrease interest rates and decrease the velocity of money
a. True
b. False
Indicate whether the statement is true or false
True
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The new growth theory examines the role of
A) technology in economic growth. B) natural resources in economic growth. C) exports in economic growth. D) government in economic growth.
If the government requires a natural monopoly to price at marginal cost,
a. monopoly firms will earn zero economic profits because the price of the good equals the cost of producing that good. b. monopoly firms will operate at a loss because P < AC. c. more firms will be able to enter the market. d. producer surplus will increase because quantity supplied is greater.
When you buy an automobile, you can prevent others from gaining any benefit simply by denying them access to the automobile. In this sense, an automobile is a(n)
a. exclusive good b. rival good c. public good d. merit good e. nonexclusive good
Which type of bond offers a relatively high interest rate to compensate for its relatively high chance of default?
a. Junk bond b. Treasury bond c. Municipal bond d. Savings bond