Using the aggregate supply and demand model, assume the economy is operating along the intermediate portion of the aggregate supply curve. An increase in the money supply will increase the price level and:
a. lower both the interest rate and real GDP.
b. raise both the interest rate and real GDP.
c. lower the interest rate and raise GDP.
d. raise the interest rate and lower real GDP.
c
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The net decline in a country's stock of international reserves over a year is called a(n):
A. trade deficit. B. trade surplus. C. balance-of-payments surplus. D. balance-of-payments deficit.
The table above gives the utility from pens and pencils. The marginal utility derived from the third pen is
A) 200. B) 155. C) 445. D) 45.
A cafeteria is willing to produce 100 cups of coffee when the price is $1 and 150 cups of coffee when the price is $1.30, other things being equal. The price elasticity of supply of coffee is
A) 1.53. B) 0.67. C) 0.10. D) 0.50.
The concept of network externalities is most relevant to purchasers of
a. computer software. b. automobiles. c. television sets. d. radios.