Because there are many buyers and sellers in a perfectly competitive market, no one seller can influence the market price
a. True
b. False
Indicate whether the statement is true or false
True
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The slope of the IS curve is influenced by the
A) speculative demand for money. B) transactions demand for money. C) velocity of money. D) marginal propensity to consume.
Suppose consumer confidence declines and as a result, consumer spending decreases by $4 billion dollars
Other things equal, if households spend $0.75 of each extra dollar of income and save the remaining $0.25, by how much will spending decrease during the third round through the circular flow? A) $1 billion B) $2.25 billion C) $3 billion D) $4 billion
The demand schedule for a good: a. indicates the quantity that people will buy at the prevailing price
b. indicates the quantities that suppliers will sell at various market prices. c. indicates the quantities that will be purchased at alternative market prices. d. is determined primarily by the cost of producing the good.
Which of the following is true about the equation of exchange?
a. The equation of exchange can be presented as: M V = P Q b. Velocity represents the average number of times that a dollar is used in purchasing final goods or services in a one-year period. c. If M increases, and V remains constant, then P must rise and/or Q must rise. d. All of the above are true about the equation of exchange.