An import restriction ________ the market price and ________ the total surplus of the market.
A. increases; decreases
B. increases; increases
C. decreases; increases
D. decreases; decreases
Answer: A
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The demand deposit multiplier is likely to be smaller than 1/RRR if
a. the public will not want to change its holdings of currency b. the public holds no currency c. banks want to hold excess reserves d. want to hold no excess reserves e. banks increase the number of loans they offer to make a larger profit
A depreciation of the U.S. dollar in the foreign exchange market lowers U.S. Real GDP when the _____________ shift of the SRAS curve exceeds the __________ shift of the AD curve
A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward
At the output level defining allocative efficiency:
A. the areas of consumer and producer surplus necessarily are equal. B. marginal benefit exceeds marginal cost by the greatest amount. C. consumer surplus exceeds producer surplus by the greatest amount. D. the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.
The time between when a policy is enacted and when it affects the economy is the ________ lag.
A. multiplier B. recognition C. legislative D. effectiveness