The money supply curve as determined by current Federal Reserve policy is
A. Downward-sloping to the right.
B. Vertical since it's not determined by the interest rate.
C. Horizontal since it's not determined by the interest rate.
D. Upward-sloping to the right.
Answer: B
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Consider a perfectly competitive market experiencing good times. In the short run, the equilibrium price will ________ and firms will earn a(n) ________
A) increase; economic profit as the new price exceeds average total cost B) increase; normal profit as the new price exceeds average total cost C) decrease; economic loss as new firms enter the industry D) decrease; economic profit as firms exit the industry E) may increase or decrease; normal profit depending on their costs
During the 20th century, the percentage of unskilled laborers in the U.S. rose steadily
Indicate whether the statement is true or false