Monetary policy will be most effective when
A) the IS curve is flat and the LM curve is flat.
B) the IS curve is steep and the LM curve is flat.
C) the IS curve is flat and the LM curve is steep.
D) the IS curve is steep and the LM curve is steep.
C
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Consider two goods: gold jewelry and round-trip bus tickets to Urbana, Illinois. Which statement is most likely correct?
a. They are inferior goods. b. Their demand curves are quite similar. c. They are complementary goods. d. They are substitute goods. e. They are neither inferior, similar, substitutes, nor complements.
Some argue the best response to monopolies is no response at all because:
A. the creation of regulation may be too difficult. B. political mishandling may make the situation even worse. C. the regulation of monopolies may not be able to be managed effectively. D. All of these statements are true.