The AD curve slopes
A) downward due to the wealth and price effects.
B) downward due to the wealth and substitution effects.
C) upward due to the price and substitution effects.
D) upward due to the wealth and substitution effects.
B
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The Federal Reserve Bank of 1914 permitted the Fed to compete with banks for profits
Indicate whether the statement is true or false
Why does the Fed have imperfect control over the money supply over short periods?
a. Because of unpredictable changes in reserve requirements b. Because the public responds to open market operations in unpredictable fashions c. Because the Fed does not know how much reserves will change when it buys or sells securities d. Because of unpredictable changes in public desire to hold cash and banks' desires to hold reserves
Based on the graph showing the median voter, if candidate A took a position at VM, candidate B would have the best chance to win the election by taking a position ______.
a. as far as possible from VM
b. just to the left of V2
c. just to the right of V1
d. as near as possible to VM
If both the demand for and the supply of smartphones are increasing, which of the following statements is TRUE?
A. It is impossible to know, given only this information, whether the prices of smartphones will go up or down in the future. B. The consumer should wait and buy a smartphone later since the price will be lower in the future. C. The consumer should buy a smartphone now since the price will be higher in the future. D. The price of a smartphone will be the same in the future as it is now.