When the Fed uses open market operations by purchasing Treasury securities from various financial institutions in the U.S., there will be
A) an outward shift in the supply schedule of loanable funds.
B) an inward shift in the supply schedule of loanable funds.
C) no shift in the supply schedule of loanable funds.
D) an inward shift in the demand schedule for loanable funds.
Ans: A) an outward shift in the supply schedule of loanable funds.
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The price elasticity of demand for gasoline is 0.40. If the price of gasoline rises by 20 percent, there will be
A) a decrease of more than 20 percent in the quantity of gasoline demanded. B) an increase in the total revenue received from the sale of gasoline. C) a loss of total revenue for gasoline producers, because at a higher price the quantity of gasoline demanded decreases. D) no change in the quantity of gasoline sold because people need gasoline.
Graphically, what impact would an increase in the price of jet fuel have on the market for air travel?
a. It would shift the supply curve for air travel to the right. b. It would shift the supply curve for air travel to the left. c. It would shift the demand curve for air travel to the right. d. It would shift the demand curve for air travel to the left.
The study of how people behave strategically under different circumstances is called:
A. strategy optimization. B. game theory. C. strategy theory. D. game strategy.
When the value of the dollar decreases, the net effect on the economy
A. will be decrease in short-run aggregate supply and an increase in aggregate demand. B. will be an increase in short-run aggregate supply and a decrease in aggregate demand. C. will be an increase in both aggregate demand and aggregate supply. D. will be a decrease in both aggregate demand and aggregate supply.