The slope of the LM curve will be flatter the __________ is the income-sensitivity of the demand for money and the __________ is the interest-sensitivity of the demand for money
A) less; less
B) less; greater
C) greater; less
D) greater; greater
B
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Economists suggest that food supply can best be assured by a policy of
a. self sufficiency b. encouraging imports c. focusing on export crops d. food security e. all of the above
The Tea Act:
a. raised the price of tea to colonists. b. allowed for more "middlemen" to be involved in the exportation of tea from India to America. c. made tea an "enumerated good" under the Navigation Acts. d. harmed smugglers of Dutch tea.
Dissaving occurs when the consumption function lies below the 45-degree line
a. True b. False Indicate whether the statement is true or false
Which of the following best describes disposable income?
a. Income after expenses and taxes b. Income after taxes c. Income after expenses d. Income after taxes and payroll deductions