Use the above figure. When the budget line rotates from "b" to "c"
A. more units of J and more units of K will be purchased.
B. fewer units of J and fewer units of K will be purchased.
C. more units of J and fewer units of K will be purchased.
D. fewer units of J and more units of K will be purchased.
Answer: C
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The short-run effect of an increase in the supply of money is
A) an increase in the price level, a decrease in real Gross Domestic Product (GDP), but an increase in nominal national income. B) an increase in the price level but not in real Gross Domestic Product (GDP). C) an increase in both real Gross Domestic Product (GDP) and the price level. D) an increase in real Gross Domestic Product (GDP) but not in the price level.
What lessons from Latin American capital-market crises might have been useful to prevent, or at least minimize, the East Asian crisis?
What will be an ideal response?
There are two types of investment: ________ investment—the spending by business firms on equipment and structures, and planned spending on residential houses—and ________ investment—spending by business firms on additional holdings of raw
materials, parts, and finished goods. A) planned; gross B) planned; inventory C) fixed; gross D) fixed; inventory
Suppose you pay $800 for a new iPhone. This is an example of
A. money as a standard of deferred payment. B. money as a medium of exchange. C. money as a store of value. D. barter.