Suppose there is an increase in expected future output. This will cause which of the following to occur?
A) the IS curve to shift left in the current period
B) the IS curve to shift right in the current period
C) the LM curve to shift up in the current period
D) the LM curve to shift down in the current period
B
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If the interest rate is 4 percent, the present value of $10,000 to be received two years from today is about
A) $9,246. B) $9,615. C) $10,816. D) $10,400.
Which of the following statements best describes the economic short run?
A) It is a period during which at least one of the firm's inputs is fixed. B) It is a period during which fixed inputs become variable inputs because of depreciation. C) It is a period during which firms are free to vary all of their inputs. D) It is a period of one year or less.
In graphical form,the effect of imposing a tax on a good is shown as
A) a leftward shift of the market supply curve. B) a rightward shift of the market supply curve. C) a downward movement along the market supply curve. D) no change to the market supply curve.
Elaine values the utility of her first cup of coffee at $1; a second cup, $.75; and a third cup, $.50 . If Elaine drinks three cups of coffee for breakfast, her marginal utility is equal to
a. $.50, the value of her last cup of coffee. b. $1.00, the value of her first cup of coffee. c. marginal utility. d. $2.25. e. $1.50.