A decrease in monetary base ________ the quantity of money, the interest rate ________, and the quantity of money demanded ________
A) decreases; falls; decreases
B) decreases; falls; increases
C) decreases; rises; increases
D) decreases; rises; decreases
E) increases; falls; decreases
D
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One million automobiles have a defect that could cause the car to explode; however, only one of those cars will actually explode. Nobody knows which one car it is
When the car does explode, the victim's family will sue the automaker for $1 million and win. The defect costs $2 per car to repair. What does economics predict about the automaker's decision to repair the defect?
For the single-price monopoly, marginal revenue is
a. more important than marginal cost b. always more than marginal cost c. always less than average cost d. always less than the price of output e. more significant than total revenue
Under what circumstances is it most clear that the government should pursue neither fiscal nor monetary policy?
A. The economy is experiencing deflation B. The economy is below potential output C. Unemployment rate exceeds the target rate of unemployment D. There is no inflation and the unemployment rate equals the target rate of unemployment
As the dollar exchange rate, e, increases, the quantity of dollars supplied in the foreign exchange market ________, and the quantity of dollars demanded in the foreign exchange market ________.
A. increases; increases B. decreases; increases C. increases; decreases D. decreases; decreases