The short run sequence of events following an unanticipated shift to a more restrictive monetary policy would be
a. lower interest rates, decrease in aggregate demand, and a reduction in output.
b. lower interest rates, increase in aggregate demand, and an expansion in output.
c. higher interest rates, decrease in aggregate demand, and a reduction in output.
d. higher interest rates, increase in aggregate demand, and an expansion in output.
C
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Which of the following is correct regarding an unregulated natural monopoly?
a. An unregulated natural monopoly will set output where the average cost curve intersects demand, and will set price equal to average cost. b. An unregulated natural monopoly will set output where the marginal cost curve intersects demand, and will set price equal to marginal cost. c. An unregulated natural monopoly will set output where the marginal revenue curve intersects the marginal cost curve, and will set price at the demand curve. d. An unregulated natural monopoly will set output where the average cost curve intersects marginal revenue curve, and will set price at the demand curve.
With microfinance, the mechanism of peer lending is a way to avoid the problem of
A. a double coincidence of wants. B. the tragedy of the commons. C. imperfect information. D. capital flight.