In the figure above, an increase in the monetary base would create a change such as a
A) movement from point a to point b along the supply of money curve MS0.
B) movement from point b to point a along the supply of money curve MS0.
C) shift from the supply of money curve MS0 to the supply of money curve MS1.
D) shift from the supply of money curve MS1 to the supply of money curve MS0.
C
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If long run average costs rise with output, you have
a. Increasing returns to scale b. Decreasing returns to scale c. Constant returns to scale d. None of the above
In what two ways does trade benefit consumers when firms are monopolistically competitive?
a. better quality products, increased information b. higher incomes, more dependable products d. lots of bells and whistles, higher wages d. lower prices, more variety
What is the shape of the expected-rate-of-return curve as presented in this chapter? Why does it have this shape?
What will be an ideal response?
Assume the market price for lemon grass is $4.00 per pound, but most buyers are willing to pay more than the market price. At the market price of $4.00, the quantity of lemon grass demanded is 1,500 pounds per month, and quantity demanded does not reach
zero until the price reaches $30.00 per pound. Construct a graph showing this data, calculate the total consumer surplus in the market for lemon grass, and show the consumer surplus on the graph. Your demand curve should be a straight line. What will be an ideal response?