Which of the following would cause an increase in the velocity of money?
a. An increase in the use of credit cards
b. An increase in the money supply
c. An increase in the demand for money
d. A decrease in the rate of interest
e. A decrease in nominal GDP and a constant money supply
a
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Lower U.S. interest rates cause the value of the dollar to
A) fall, making U.S. goods relatively more expensive on world markets. B) fall, making U.S. goods relatively cheaper on world markets. C) rise, making U.S. goods relatively more expensive on world markets. D) rise, making U.S. goods relatively cheaper on world markets.
Suppose a single firm has constant marginal cost and faced the demand curve 
a. Illustrate in this graph how a monopolist who cannot price discriminate would price this good. What is the monopoly price and quantity?
b. Suppose two firms with the same marginal cost as the monopolist operated in this market instead. Suppose quantity is the strategic variable and the two firms simultaneously choose quantity. On a graph with firm 1's output on the horizontal and firm 2's output on the vertical, illustrate firm 2's best response function with numerical labels for each intercept. c. Add firm 1's best response function and determine the Nash equilibrium quantities. d. What's the equilibrium price resulting from the quantities you determined in (c)? e. What would be the equilibrium price if the strategic variable for the firms were price instead? What will be an ideal response?
Certain hotels offer promotional strategies in which kids under 12 eat free at the hotel's restaurant. This is an example of second-degree price discrimination
Indicate whether the statement is true or false
According to the theory of rational expectations, errors in predicting inflation will
a. be biased upward more often than not. b. be purely random. c. tend to be biased downward when inflation is rising, and tend to be biased upward when inflation is falling. d. tend to be biased upward when inflation is rising, and tend to be biased downward when inflation is falling.