An increase in the price level will lead to which of the following sequences?
a. The money demand curve shifts leftward, the interest rate drops, the aggregate expenditure line shifts upward, and there is movement downward along the aggregate demand curve.
b. The money demand curve shifts rightward, the interest rate increases, the aggregate expenditure line shifts downward, and there is movement upward along the aggregate demand curve.
c. The money demand curve shifts leftward, the interest rate drops, the aggregate expenditure line shifts downward, and there is movement upward along the aggregate demand curve.
d. The money demand curve shifts rightward, the interest rate increases, the aggregate expenditure line shifts upward, and there is movement downward along the aggregate demand curve.
e. the money demand curve shifts leftward, the interest rate drops, the aggregate expenditure line shifts upward, and there is movement upward along the aggregate demand curve.
B
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Suppose Eddie's demand curve for text messages is T = 150 - 500Pt, where T stands for the number of text messages and Pt represents the price of text messages. What is Eddie's consumer surplus if Pt = $0.20 per message?
A. $0.50 B. $1.00 C. $2.00 D. $2.50
Edward Chamberlin argued that governments should
a. ban the use of brand names. b. not enforce the trademarks that companies use to identify their products. c. vigorously enforce the trademarks that companies use to identify their products. d. tax companies whose products have brand names in proportion to how much consumers recognize their products.
If the Fed wants to reduce bank reserves, it can:
A. Raise the discount rate or buy bonds on the open market. B. Reduce the minimum reserve ratio or sell bonds on the open market. C. Raise the discount rate or sell bonds on the open market. D. Decrease the minimum reserve ratio or reduce the discount rate.
A monopolist will never produce at a quantity where the:
A. MR < 0. B. MR > 0. C. P > MR. D. MR= MC.