An increase in the amount of money in circulation would cause a
A. movement up the aggregate demand curve.
B. shift of the aggregate demand curve to the left.
C. movement down the aggregate demand curve.
D. shift of the aggregate demand curve to the right.
Answer: D
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A flawed argument for protection from foreign trade is that
i. tariffs save domestic jobs. ii. tariffs protect the national culture. iii. quotas bring about diversity and stability. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
The problem with inflation is that as prices rise, consumers can no longer afford to buy as many goods and services
Indicate whether the statement is true or false
In one week, Mohammed can knit 5 sweaters or bake 240 cookies. The opportunity cost per cookie for Mohammed is
a. $5 b. 5 sweaters c. 48 sweaters d. 1/48 of a sweater e. 48 cookies
When a person takes cash to the bank and deposits it in a checking account,
a. that act directly and immediately reduces the amount of money in the economy. b. that act directly and immediately increases the amount of money in the economy. c. that act directly and immediately changes one kind of money into another kind of money. d. None of these.