Monetary neutrality means that a change in the money supply
a. does not change real variables. Most economists think this is a good description of the economy in the short run and in the long run.
b. does not change real variables. Most economists think this is a good description of the economy in the long run but not the short run.
c. does not change nominal variables. Most economists think this is a good description of the economy in the short-run and the long run.
d. does not change nominal variables. Most economists think this is a good description of the economy in the long run but not the short run.
b
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Why do negative externalities like pollution result in inefficiency?
a. Because producers artificially restrict their supply. b. Because producers ignore the external costs they impose on third-parties. c. Because producers manufacture more goods than people can afford to buy. d. Because producers will receive an unequal distribution of profits.
Drug interdiction, which reduces the supply of drugs, may decrease drug-related crime because the demand for drugs is inelastic
a. True b. False Indicate whether the statement is true or false
Suppose that the Federal Reserve (Fed) wishes to implement an expansionary (loose) policy to increase economic growth in the U.S. economy. Which policy would the Fed most likely adopt?
Increase income taxes Increase interest rates Reduce interest rates and increase money supply reduce the money supply
If you own 100 shares of preferred stock, how many regular votes would you get to cast at the next stockholders meeting?
A. 500 B. 1 C. 100 D. 0