A.
because as you're passing the page you are scanning it and looking for the answer
Answer:
C
Explanation:
The correct option is C :price to increase and the profits of firms in the market to decrease
This can be explained by the fact that, since it always been mandatory to possess a license in order to work in a particular market. This certainly reduces the competition in the market and thus, the prices would increase; therefore, as the firms have to pay for licence thus would reduce the profits of firm.
Answer:
The time inconsistency of policy implies that
a. what policymakers say they will do is generally what they will do, but people don't believe them because of current policy.
Explanation:
When the current policy of a decision maker does not agree with the current practice due to the passage of time because policies that were determined to be optimal before now are no longer considered to be optimal today and are not implemented, then there is said to be a problem of time inconsistency of policy. It generally happens in the formulation and implementation of monetary policies by the central bank.
Answer:
c. Increase collision deductible to $500.
Explanation:
The adjustment of Increase collision deductible to $500 would allow Jerry to meet his goal.
Answer:
The price level and GDP will fall.
Explanation:
A decline in money supply will increase the interest rate, as a result the investment will decline. This will cause production to decrease. An increase in tax will cause the cost of production to increase, reducing the supply. The taxes will decrease the disposable income, further reduing demand and cnsumption. A pessimistic expectation of business will also cause production to decline.
A rise in the value of dollars will make exports expensive, reducing exports. All of this will cause the GDP and price level to decline.