Suppose the central bank implements a monetary contraction that is fully expected by financial market participants. Given this information, we would expect
A) stock prices to rise.
B) stock prices to fall.
C) stock prices to remain unchanged.
D) an ambiguous effect on stock prices.
E) stock prices to fall and the interest rate to rise.
C
Economics
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When is a market at equilibrium?
A. when quantity demanded equals quantity supplied B. when suppliers begin to reduce prices C. when unsold goods begin to pile up D. when prices equal the cost of production
Economics
Which statement concerning monopolistic competition is false?
A. In the long run P = AC > MC. B. Firms may experience positive economic profits in the long run. C. Firms may experience losses in the short run. D. Firms differentiate their products, but the products are relatively substitutable.
Economics