When the economy is initially at full employment:
a. expansionary monetary policy will tend to increase the price level in the short run and the long run.
b. expansionary monetary policy will tend to increase the price level in the short run but not the long run.
c. expansionary monetary policy will tend to increase the price level in the long run but not the short runq
d. expansionary monetary policy will not tend to increase the price level in the short run or the long run.
a
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If reserves in the banking system increase by $100, then checkable deposits will increase by $500 in the simple model of deposit creation when the required reserve ratio is
A) 0.01. B) 0.10. C) 0.05. D) 0.20
Providers of health care insurance require applicants to provide information on their medical history. The purpose may be to minimize which of the following problems?
A) moral hazard B) adverse selection C) government taxes D) opportunity cost
Each of the following would increase the demand for U.S. dollars, shifting the demand curve for dollars to the right, EXCEPT:
A. an increased preference for U.S.-made goods. B. an appreciation of foreign currencies relative to the U.S. dollar. C. an increase in the real interest rate on U.S. assets. D. an increase in real GDP abroad.
Exhibit 8-4 Demand and cost curves for a monopolist
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As shown in Exhibit 8-4, in order to maximize its profit (or minimize its loss), what price should the monopoly charge for its product?
A. $60 per unit. B. $90 per unit. C. $120 per unit. D. $150 per unit.