An increase in the required reserve ratio by the Federal Reserve would:
a. cause M1 to contract.
b. cause M1 to expand.
c. have no effect on M1 or M2.
d. affect only M2, not M1.
a
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Consumers who will pay high prices to be among the first to own certain new products are called
A) gullible. B) naive consumers. C) savvy consumers. D) early adopters.
In the new Keynesian model, expected inflation is a function of ________
A) expected future output gaps and markup shocks B) current and past inflation C) unanticipated aggregate demand shocks D) expected growth of the money supply
Price elasticity of demand is a measure of the change in quantity demanded that results from a change in price
a. True b. False Indicate whether the statement is true or false
A remarkable feature of the Four Tigers is that economic growth occurred with:
a. no inflation b. high inflation c. a relatively equal distribution of income d. an unequal distribution of income e. none of the above