Which of the following influences the slope of the LM curve?
A) The interest-sensitivity of money demand
B) The interest-sensitivity of investment
C) The interest-sensitivity of government spending
D) The interest-sensitivity of saving
A
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Refer to Figure 7-1. The efficient equilibrium price is
A) $30. B) $25. C) $20. D) <$20.
The efficient markets hypothesis
A) assumes that market participants form their expectations adaptively. B) applies rational expectations to the pricing of assets. C) applies to the stock market, but not to the bond market. D) indicates that the stock market is efficient, but not rational.
In a general equilibrium model, a tax on a single factor in its use only in a particular sector can affect returns to all factors in all sectors.
A. True B. False C. Uncertain
According to Okun's law
A. an increase in inflation above trend, will lower unemployment B. an increase in real gdp growth above trend, will lower unemployment C. an increase in interest rates, above trend, will lower unemployment D. an increase in real gdp growth, above trend, will lower inflation