A higher price level leads to
A. lower real wealth.
B. higher level of debt.
C. a higher consumption function.
D. higher aggregate demand.
Answer: A
You might also like to view...
Goldsmiths who issued receipts for the customer deposits of gold or silver coins were probably the originators of
A) money. B) paper money. C) seignorage. D) Federal Reserve notes.
Which of the following can prevent markets from reaching efficiency? I. price regulations that cap the price that may be charged II. increasing marginal cost III. monopoly
A) I only B) I and II C) II and III D) I and III
If the simple money multiplier is 5, the required reserve ratio must be equal to _____
a. 5 percent b. 0 c. 10 percent d. 50 percent e. 20 percent
In the short-run, a monopolistically competitive firm:
a. can earn only a normal profit. b. will produce at the point where marginal revenue is greater than marginal cost, in order to maximize profits. c. will produce at the point at which price equals minimum ATC, to maximize profits. d. will charge a price equal to its marginal revenue. e. will shut down temporarily if price is less than AVC.