Keynesians reject the influence of monetary policy on the economy. One argument supporting this Keynesian view is that the:
a. money demand curve is horizontal at any interest rate.
b. aggregate demand curve is nearly flat.
c. investment demand curve is nearly vertical.
d. money demand curve is vertical.
c
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Suppose that smoking creates a negative externality. If the government imposes a per-cigarette tax equal to the per-cigarette externality, then
a. the after-tax equilibrium quantity of cigarettes smoked will be less than the socially optimal quantity of cigarettes smoked. b. the after-tax equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked. c. the after-tax equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked. d. There is not enough information to answer the question.
Firms will hire additional workers as long as the wage:
A. equals the marginal product of labor. B. is less than the value of the marginal product of labor. C. is greater than the marginal product of labor. D. is less than the marginal product of labor.