Something that affects the amount of money in existence will
A. affect all markets.
B. not affect the economy as a whole but may affect certain key markets such as the market for loans.
C. have no particular effect.
D. have an effect only if the change in money is large.
Answer: A
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New Keynesian economists generally argue that
A) there is an exploitable tradeoff between unemployment and inflation. B) changes in aggregate demand will have relatively greater effects on real GDP when firms change prices less frequently. C) activist policy can be used to reduce the fluctuations in real GDP. D) all of the above
Scarcity limits the volume of goods that an economic system can produce but does not limit the production of services.
Answer the following statement true (T) or false (F)
If both supply and demand simultaneously decrease
A) the market clearing price definitely rises, and the equilibrium quantity definitely falls. B) the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate. C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate. D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.
Kobe has just eaten another cookie and his total utility increased. This means that Kobe's marginal utility for this additional cookie is
A. positive. B. negative. C. zero. D. not determinable without more information.