If the nominal interest rate is less than the equilibrium nominal interest rate determined in the money market, then in the short run households and firms
A) buy financial assets.
B) sell financial assets.
C) increase real GDP.
D) lower the price level.
E) raise the price level.
B
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Assume that Germany can produce 10 million bottles of beer or 4 million bottles of vodka. Further assume that Russia can produce 7 million bottles of beer or 3 million bottles of vodka. As a result, which of the following is true with regard to absolute and comparative advantage?
a. Germany has the absolute advantage in beer and the comparative advantage in beer. b. Germany has the absolute advantage in beer and the comparative advantage in vodka. c. Russia has the absolute advantage in beer and the comparative advantage in beer. d. Russia has the absolute advantage in beer and the comparative advantage in vodka.
Price leadership is a form of
A. tacit collusion. B. explicit collusion. C. monopolistic competition. D. a cartel policing mechanism.