Which of the following would likely cause aggregate demand to shift to the right?
A. Consumer confidence regarding future income increases
B. The government builds new highways
C. A tax credit for small businesses is issued
D. All of these are likely to cause aggregate demand to shift to the right.
Answer: D
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When Maria deposits $100 in currency in her checkable deposit at Bank of America, the immediate effect is that the quantity of M1 ________ because ________
A) changes only if Bank of America has excess reserves; if the bank does not have excess reserves, the overall effect to M1 is too small to notice B) decreases; checkable deposits are included in M2 but are not included in M1 C) does not change; both currency and checkable deposits are included in M1 D) changes, but the direction of the change cannot be determined; the direction of the change depends on what Bank of America does with the deposit E) increases; both currency and checkable deposits are included in M1
If consumption is $8 billion, investments is $4 billion, government purchases are $2 billion, imports are $1 billion, and exports are $2 billion, GDP must equal:
A. $16 billion. B. $17 billion. C. $15 billion. D. $14 billion.
If the demand curve for a product was vertical, then the elasticity of demand would be: a. equal to zero
b. equal to one. c. greater than one, but less than infinity. d. equal to infinity.
An excellent example of price leadership can be found in
A. automobiles. B. oil. C. banking. D. cigarettes.