Moving up a straight-line demand curve, the absolute price elasticity of demand
A. remains constant.
B. varies in uncertain ways.
C. increases.
D. decreases.
Answer: C
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An expansionary monetary policy ________.
A. is designed to reduce aggregate demand B. shifts the aggregate supply curve to the right C. can reduce the length of a recession D. is used when the inflation rate is high
Equilibrium expenditure occurs when
A) real GDP minus net taxes equals disposable income. B) disposable income equals consumption expenditures plus imports. C) disposable income equals real GDP. D) aggregate planned expenditure equals real GDP. E) real GDP plus net taxes equals disposable income.
A few U.S. commercial banks are allowed to have "section 20 affiliates" that can
A) underwrite corporate debt and equity. B) operate in foreign markets. C) branch nationwide regardless of state laws. D) own majority shares in other banks.
The mangers of Healthy Snacks and Healthy Bars are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?
A) an announcement made by either firm regarding their future plans B) bargaining C) a focal point D) the Pareto criterion