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1. A rise in interest rates due to a decrease in the money supply will _____ aggregate demand.
A. not change
B. increase
C. reduce
D. cause random fluctuations in
2. A contractionary monetary policy is appropriate during a recession.
True
False
3. A sale of Treasury bills by the Federal Reserve _____ interest rates and _____ the money supply.
A. lowers; increases
B. raises; reduces
C. raises; increases
D. lowers; reduces
For a monopolist, if price is above average total cost, the monopolist is...
Competitive Model, Price Floors, Price Ceilings, Elasticity. Using the Supply and Demand model, show the equilibrium Price and equilibrium Quantity. Label the Consumer Surplus and Producer Surplus on your model.
A tax cut has just been announced. Congressman Growth states that its effect will be on the supply side, Congress Stable states that its effect will be on the demand side. Demonstrate graphically the effect of the tax cut on the price level and outpu..
Tom gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 112 hours. His wage is $20. His utility function is U(C,L) = C^3/4*L^1/4. Tom receives 640 each week from her great-grandmother. What is the mar..
The most you would be willing to pay for having a freshly washed car before going out on a date is $7. The smallest amount for which you would be willing to wash someone else’s car is $4. You are going out this evening and your car is dirty. How much..
Historians have debated whether or not a “Market Revolution” took place in the United States during the first half of the nineteenth century. Was the Market Revolution simply a “transportation and communication revolution,” or is there evidence that ..
When looking at a cheaper dollar, you will find that this will affect our economy. We are able to export more goods and services given the cheaper dollar. How do you think the US can support a cheaper dollar?
Describe in detail the economic problems associated with an increasing national debt. How much is the national debt, and how much is the current budget deficit? What five foreign countries/organizations are the leading holders of the national debt, a..
Assume a large world economy with several countries. There is a good that can be produced domestically by every country in the absence of trade. Suppose Country 1 has the following demand and supply curves for this good: D1= 28-2P and S1= 2P-4. By ho..
In the spring of 2002, lettuce price doubled from about $1.5 to $3 per head. The reaction of one consumer was quoted in newspaper article; "I will not buy lettuce when it is a $3 a head" she said, adding that other green vegetable can fill in for let..
q. in this problem we consider the differences between the competitive monopoly and cournot equilibria under the same
Bart is a new engineering graduate that decides to purchase a new automobile costing $25,000. He can only afford a down payment of $5,000 and must finance remaining $20.000. The dealership offers financing at 15% per year, compounded monthly over a 5..
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