The economist Irving Fisher, after whom the Fisher effect is named, explained why interest rates ________ as the expected rate of inflation ________, everything else held constant
A) rise; increases
B) rise; stabilizes
C) fall; stabilizes
D) fall; increases
A
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The intersection of the aggregate demand and aggregate supply curves determines the ________.
A. equilibrium level of real domestic output and prices B. per-unit cost of production in the economy C. shape of the aggregate demand curve D. productivity level in the economy
When the price of a good rises, there is
A) an increase in supply. B) a decrease in supply. C) a decrease in quantity supplied. D) an increase in quantity supplied.
Which of the following statements best describes monetary and fiscal policy?
a. Both monetary policy and fiscal policy can be changed several times each year. b. Both monetary policy and fiscal policy are much slower to be enacted. c. Monetary policy can be changed several times each year, but fiscal policy is much slower to be enacted. d. Fiscal policy can be changed several times each year, but monetary policy is much slower to be enacted.
It is possible that if a monopoly is broken up, the cost of production for that product could increase
a. True b. False Indicate whether the statement is true or false