Explain why high priced lawyers may support an industry ban on price advertising for lawyers
What will be an ideal response?
An advertising ban that prohibits lawyers from advertising prices allows lawyers to charge higher prices. The search cost of finding a less expensive lawyer is much higher if no price advertising occurs.
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If the asset market is to remain in equilibrium, then if the money supply increases, output is unchanged, the price level is unchanged, and the expected inflation rate is unchanged, then
A) the real interest rate must rise. B) the real interest rate must decline. C) the nominal interest rate must rise. D) the inflation rate must rise.
An increase in inflation in the United States relative to the rate in France would make:
a. U.S. goods relatively less expensive in the United States and in France. b. French goods relatively less expensive in the United States and U.S. goods relatively more expensive in France. c. French goods relatively more expensive in the United States and in France. d. French goods relatively more expensive in the United States and U.S. goods relatively less expensive in France.