A sharp rise in the real value of stock prices, which is independent of a change in the price level, would best be an example of:
A. The interest-rate effect
B. The real-balances effect
C. A change in the degree of excess capacity
D. A change in real value of consumer wealth
D. A change in real value of consumer wealth
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The table above shows the total utility from the two goods Freddy likes to consume. Suppose that Freddy has already eaten 5 bags of Fritos. If he consumes one more bag, his marginal utility will
A) equal 40. B) equal 35. C) equal 15. D) depend on the price of the extra bag.
A patent
a. is given only to government owned companies. b. is not a legal impediment to entry. c. is a privilege granted by a state to an inventor over his invention. d. does not give the holder a monopoly during the period it is in effect.
If policymakers deem inflation as being too high, then the policy response should be monetary ________, which shifts aggregate demand ________.
A. easing; right B. easing; a left C. tightening; right D. tightening; left
Whenever an input makes up a large percentage of a good's final cost, an increase in that input's price will
A) affect total cost relatively more. B) not affect total revenues. C) affect only accounting profits. D) cause the firm to shutdown.