In the medium run, a reduction in inflation causes
A) a reduction in the opportunity cost of holding money.
B) an increase in the opportunity cost of holding money.
C) no change in the opportunity cost of holding money.
D) individuals to switch from holding money to bonds and reduce their real money balances.
A
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Which one of the following will cause the production possibilities curve to shift outward?
a. improved public education b. improved health care systems c. larger budgets for research, development, and exploration d. all of the above
One reason why it is difficult to regulate a natural monopoly is
a. the lack of relevant economic theory b. determining what price the firm is actually charging its customers c. determining the appropriate side payment d. an information problem — the monopoly's managers have an incentive to overstate costs e. an information problem — the monopoly's managers have an incentive to overstate revenues