According to the Monetarist view, the impact of expansionary monetary policy will be:
A. the same in the long run as in the short run.
B. the same regardless of whether the effects of the policy are anticipated or unanticipated.
C. a higher price level (inflation).
D. a decrease in short-run prices and an increase in long-run prices.
Answer: C
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Book publishers often use a cost-plus pricing strategy. One reason for this is
A) bookstores, not publishers, ultimately determine how many books will be produced. B) much of the cost of publishing textbooks is difficult to assign to any particular book. C) publishers do not want to incur the expense of determining the profit-maximizing strategy. They prefer cost-plus pricing because of its lower cost. D) most publishers do not hire economists who can determine the number of books they must sell to equate marginal cost and marginal revenue.
In the aftermath of the 2008 financial crisis, everyone agreed that lower leverage ratios would be a good thing
a. True b. False.