Which of the following will cause the LM curve to shift to the left?
A) A decrease in investment
B) A decrease in money demand
C) An increase in velocity
D) A decrease in the money supply
D
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Advertising is a ________ cost that is incurred by ________
A) variable; monopolies B) variable; perfectly competitive firms C) fixed; perfectly competitive firms D) fixed; monopolistically competitive firms E) marginal; monopolistically competitive firms
If the required reserve rate is ten percent and banks do not hold any excess reserves and there are no changes in currency holdings, a $1 million open market purchase by the Fed will result in what change in loans?
A. An increase of $10 million B. No change C. An increase of $1 million D. A decrease of $1 million
The economic theory supporting policies of income redistribution is based on the idea that income increases have ______.
a. equal utility at all incomes b. no utility above the poverty line c. less utility at higher incomes d. less utility at lower incomes
If the price of coffee is $4 per pound, how much coffee would consumers collectively be willing to purchase?
a. 3,000 pounds per year
b. 5,000 pounds per year
c. 8,000 pounds per year
d. 12,000 pounds per year