A liquidity trap is said to exist when a change in monetary policy has no effect on
A) the money supply.
B) the natural level of employment.
C) aggregate supply.
D) interest rates.
Ans: D) interest rates.
Economics
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In the long run, output is determined solely by the supply of capital and the supply of labor, not the price level
Indicate whether the statement is true or false
Economics
The wheat growing industry consists of very many farmers producing identical products. The market structure that best fits the wheat growing industry is probably
A) perfect competition. B) monopolistic competition. C) monopoly. D) oligopoly.
Economics