The price of bread in terms of gallons of milk per loaf is 0.6 and the price a gallon of milk in terms of pounds of butter per gallon is 1.2. What is the relative price of bread to butter?
A) 1.39
B) 0.6
C) 0.72
D) 0.50
C
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Which of the following would decrease the value of the dollar in the long run?
A) an increase in U.S. tariffs on foreign goods B) a decrease in the demand for American goods relative to goods from other countries C) a decrease in inflation in the United States relative to other countries D) a decrease in the supply of dollars on the foreign exchange market
In the United States, the different categories of money supply measurement are based on:
a. the elasticity of money. b. the liquidity of money. c. the amount of purchasing power. d. the reserve requirements in the banking system. e. the velocity of money.
The major factor distinguishing M1 from M2 is:
a. Legal tender status. b. Liquidity. c. Whether or not the financial asset is backed by gold, silver, or some other precious metal. d. Whether or not the financial asset can be turned into a precious metal quickly and without substantial loss of value. e. All of the above are important distinguishing factors.
Suppose that the price elasticity of supply is 0.5 and the price increases by 4%. We would predict:
A. an 8% increase in quantity supplied. B. a 2% increase in quantity supplied. C. a 0.8% increase in quantity supplied. D. a 0.2% increase in quantity supplied.