If the price level in any country increases by 15 percent during a year, then the price index for that year will be 85 as compared to the base year
a. True
b. False
Indicate whether the statement is true or false
False
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Average fixed cost is equal to
A) the amount of total cost that does not change as output changes in the short run. B) fixed cost divided by the quantity of output produced. C) average total cost plus average variable cost. D) fixed cost multiplied by the quantity of output produced.
The interest-rate-based monetary policy transmission mechanism emphasizes the
A) indirect effect of a change in the money supply that operates via a change in total planned expenditures generated by a change in the interest rate. B) direct effect of a change in the money supply that operates via a change in total planned production generated by a change in the price level. C) direct effect of a change in the money supply that operates via a change in total planned expenditures generated by a change in the interest rate. D) indirect effect of a change in the money supply that operates via a change in total planned production generated by a change in the price level.