What would happen in the market for rice if its demand increased but the price was NOT allowed to change?
A. There would be a shortage of rice.
B. The supply of rice would decrease.
C. There would be a surplus of rice.
D. The supply of rice would increase.
Answer: A
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Which of the following is NOT included in the M1 measure of money?
A) currency held outside banks B) currency held in bank vaults C) checking deposits at commercial banks D) checking deposits at credit unions
If people have more time to adjust to a price change,
a. demand becomes more elastic, and supply becomes less elastic b. demand becomes less elastic, and supply becomes more elastic c. both supply and demand become less elastic d. both supply and demand become more elastic e. elasticity of both demand and supply tends toward unity
The nominal rate of interest is equal to the real interest rate plus the inflation rate
a. True b. False Indicate whether the statement is true or false
The more progressive the tax system, the:
A. less is the effect of crowding out on the economy. B. greater is the severity of business fluctuations on the economy. C. less is the built-in stability for the economy. D. greater is the built-in stability for the economy.