Classical economists believe that:
A. velocity is not constant.
B. changes in the money supply affect real GDP.
C. the quantity of money explains prices.
D. the money supply affects velocity.
Answer: C
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Which of the following is NOT a characteristic of rent controls?
A. Fewer newly built apartment buildings. B. Greater availability of apartments. C. Lower expenditures on maintenance. D. Excess demand for apartments.
Sam wins a Mega Millions jackpot worth $3 million. Which of the following is most likely true of Sam's consumption function? a. His consumption function will be flatter
b. His consumption function will be steeper. c. His consumption function will shift upward. d. His consumption function will shift downward.
A firm enters into a consent decree to avoid an even greater legal setback. If the terms of the consent decree effectively double the firm's fixed costs, then
a. marginal cost more than doubles b. marginal cost doubles c. marginal cost remains unchanged d. average total cost remains unchanged e. average variable cost doubles
The financial system is made up of the:
A. government's offices that regulate over all transactions conducted between borrowers and savers. B. government and monetary authority. C. government's offices that keep watch over all transactions conducted between savers and lenders. D. institutions that bring together savers, borrowers, investors, and insurers in a set of interconnected markets where people trade financial products.