The relationship between the government deficit and the change in the monetary base is
A) deficit equals change in government debt held by the public minus change in monetary base.
B) deficit equals change in government debt held by the public plus change in monetary base.
C) deficit equals change in government debt outstanding plus change in monetary base.
D) deficit equals change in government debt outstanding minus change in monetary base.
B
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Which of the following statements about the Keynesian model is correct?
a. The economy would achieve full employment if left free from destabilizing government policies. b. Active monetary is always effective while fiscal policies is rarely so. c. Both Keynesians and classicists reach the same policy conclusions, but for different reasons. d. The economy is inherently unstable because of the instability of aggregate demand, which is primarily due to unstable expectations. e. both b and d.
The number of firms in an oligopoly must be
A. Small enough so that one firm's decisions have a significant impact on the decisions of the other firms in the industry. B. Large enough so that firms cannot coordinate. C. Small enough so that revenues are large enough to support advertising expenditures. D. Four.