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.
c
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During the financial crisis of 2007-2009, the U.S. government determined that
a. AIG was too big to fail but Lehman Brothers was not. b. Lehman Brothers was too big to fail but AIG was not. c. both Lehman Brothers and AIG were too big to fail. d. neither Lehman Brothers nor AIG were too big to fail.
Jayden can produce 10 pens or 20 pencils in one hour while Alexander can produce 15 pens or 5 pencils in one hour. Which of the following statements is correct?
a. Alexander has a comparative advantage over Jayden in the production of pencils b. Alexander has a comparative advantage over Jayden in the production of pens c. Jayden has a comparative advantage over Alexander in the production of pens d. Alexander and Jayden cannot gain from specialization and exchange.