When the money market is drawn with the value of money on the vertical axis, an increase in the money supply creates an excess
a. supply of money, causing people to spend more.
b. supply of money, causing people to spend less.
c. demand for money, causing people to spend more.
d. demand for money, causing people to spend less.
a
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Consumption expenditures in the U.S. usually account for approximately __________ percent of GDP
A) 40 B) 50 C) 60 D) 70 E) 80
If we are going to get the most value from our resources, entrepreneurs should choose the investment alternatives that
a. yield a profitable rate of return. b. are most heavily subsidized by the government. c. result in the production of the largest possible output regardless of value to consumers. d. reduce the value of resources and retard wealth accumulation.
A tariff is a tax levied on imports by a country.
Answer the following statement true (T) or false (F)
If a consumer doubles her quantity of ice cream consumed when her income rises by 25%, then her income elasticity of demand for ice cream is
A) 8.0. B) 4.0. C) .25. D) .08.