When the real quantity of money supplied equals the real quantity of money demanded, there is said to be
A) goods market equilibrium.
B) asset market equilibrium.
C) monetary neutrality.
D) money illusion.
B
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Which of the following will increase aggregate expenditure in the United States?
A) an increase in the price level B) an increase in the value of the dollar C) an increase in interest rates D) an increase in government purchases
According to the law of comparative advantage, both individuals and nations will be able to produce a larger joint output if each productive activity is undertaken by
a. the high opportunity cost producer. b. the low opportunity cost producer. c. the producer who is able to hire workers at the lowest wage. d. the party that can complete the productive activity most rapidly.
Regional Bank is subject to a 10 percent required-reserve ratio. If this bank received a new checkable deposit of $1,000 . it could make new loans of
a. $100. b. $900. c. $1,000. d. $10,000.
If a tax imposed in a market generates deadweight in that market, then the tax:
A. will generate very little tax revenue. B. could still increase economic surplus, depending on how the tax revenue is spent. C. will necessarily lower economic surplus. D. will never be approved by voters.