An increase in the money supply will affect aggregate demand
A. only if the increase in the money supply causes interest rates to rise.
B. if the increase in the money supply causes interest rates to fall and/or causes people to buy more goods and services.
C. only if the increase in the money supply causes people to buy less goods and services.
D. only if the increase in the money supply causes people to increase their saving.
Answer: B
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The majority of Americans at the end of the colonial period were of
(a) French origin. (b) British origin. (c) German origin. (d) Dutch origin.
The Federal Reserve System divides the U.S. into _____ districts
a. 5 b. 21 c. 6 d. 12 e. 17
If the price of ice cream rose to $30 per gallon, consumers would purchase fewer gallons of ice cream than if the price were $4 per gallon. If the price of chocolate sauce fell to $0.50 per can, consumers would purchase more chocolate sauce than if the price were $5 per can. These relationships illustrate the
a. law of supply. b. law of demand. c. difference between normal and inferior goods. d. difference between substitute and complement goods.
Refer to the graph shown, which depicts a perfectly competitive firm. If the price of the product is $8 and the firm maximizes profit:
A. output will be 100 units per day. B. average cost of the product will be at the minimum possible level. C. the firm will earn economic profits of more than $330 per day. D. the industry will be in long-run equilibrium.