Other things the same, if the money supply rises by 2% and people were expecting it to rise by 5%, then some firms have
a. higher than desired prices, which increases their sales.
b. higher than desired prices, which depresses their sales.
c. lower than desired prices, which increases their sales.
d. lower than desired prices, which depresses their sales.
b
You might also like to view...
Which of the following statements is TRUE for any marginal and average?
A) When the marginal is greater than the average, the average increases. B) When the marginal is less than the average, the average increases. C) When the marginal is rising, the average is increasing. D) When the marginal is equal to the average, the average decreases.
Examining the conditions that could lead to a recession in an economy is an example of a macroeconomic topic
Indicate whether the statement is true or false
Acme Inc found a tricky way to conform to the letter of the law with respect to new EPA regulations, even though they violated the spirit of the law. This is called
A) the capture theory. B) collusive response. C) share-the-gains, share-the-pains theory. D) creative response.
The issue of fairness versus efficiency arises
a. only in a command economy. b. only in a market economy. c. in neither a command nor a market economy. d. in both a command and a market economy.