The slope of a vertical straight line is infinity
a. True
b. False
A
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The official settlement balance
A) is an amount that the IMF requires each member country to pay annually. B) must by definition always be zero. C) equals the current account balance divided by the capital account balance. D) equals the net increase in a country's official reserve assets.
Assume that a firm's marginal cost is $10 and the elasticity of demand is -2. We can conclude that the firm's profit maximizing price is approximately
A) $20. B) $5. C) $10. D) The answer cannot be determined without additional information.
According to the aggregate demand and aggregate supply model, in the long run a decrease in the money supply leads to
a. decreases in both the price level and real GDP. b. an increase in real GDP and an increase in the price level. c. a decrease in the price level but does not change real GDP. d. an increase in the price level but does not change real GDP.
Which statement is true?
A. Only monetary policy can affect aggregate demand. B. Only fiscal policy can affect aggregate demand. C. Both monetary and fiscal policy can affect aggregate demand. D. Neither monetary nor fiscal policy can affect aggregate demand.