In a world where the price level could adjust immediately to its new long-run level after a money supply increase
A) The dollar interest rate would increase because prices would adjust immediately and prevent the money supply from rising.
B) The dollar interest rate would fall because prices would adjust immediately and prevent the money supply from rising.
C) The dollar interest rate would fall because prices would adjust immediately and prevent the money supply from decreasing.
D) The dollar interest rate would decrease because prices would adjust immediately and prevent the money supply from decreasing.
E) The dollar interest rate would fall because prices would not be able to prevent the money supply from rising.
B
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In the long run, ________ differences in economic growth rates result in ________ differences in GDP per capita
A) small; no B) small; large C) large; no D) large; small
The existence of labor unions could contribute to real-wage rigidity, except that in the United States
A) labor unions are outlawed. B) most workers aren't in unions. C) unions are interested in benefits, not wages. D) unions try to increase employment rather than negotiating over wages.