If the demand for money increases, what happens in the IS-LM framework?
A) The IS curve shifts right.
B) The LM curve shifts right.
C) The IS curve shifts left.
D) The LM curve shifts left.
Ans: D) The LM curve shifts left.
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The gap between the actual and predicted values of a dependent variable is called
A) the error term. B) an exogenous factor. C) the residual. D) an endogenous factor.
Who said, "The whole of science is nothing more than the refinement of everyday thinking"?
a. Isaac Newton b. Albert Einstein c. Adam Smith d. Benjamin Franklin
Assume that a manufacturer of stereo speakers purchases $40 worth of components for each speaker. The completed speaker sells for $70. The value added by the manufacturer for each speaker is:
a) $110. b) $30. c) $40. d) $70.
The decision by firms to enter a market shifts the market supply curve to the right.
Answer the following statement true (T) or false (F)