Two goods are substitutes if an increase in the price of one good leads to a decrease in demand for the other
Indicate whether the statement is true or false
FALSE
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How is real seignorage revenue related to inflation? How does the quantity of real seignorage revenue change as inflation rises from zero to a positive level, to still higher levels?
What will be an ideal response?
If a firms cuts inputs in half, and output falls by more than half, then there are
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) decreasing marginal returns.
When spending by the federal government exceeds net taxes, _____
a. the price level tends to fall b. the money supply must fall c. the aggregate demand curve shifts rightward d. aggregate supply moves rightward e. there is a federal budget surplus
Negative relationships are also referred to as inverse relationships.
Answer the following statement true (T) or false (F)