In which of the following market types do all firms sell products so identical that buyers do not care from which firm they buy?

The liquidity effect indicates that expansionary monetary policy causes

A) interest rates to fall. B) interest rates to rise. C) bond prices to fall. D) inflation.

Which of the following would be most likely to encourage capital formation in a less-developed country?

a. The expectation of sustained high inflation. b. The expectation that property rights will be highly secure in the years ahead. c. The imposition of high tariffs and other restraints limiting imports. d. Higher personal and corporate tax rates.