Movements along a money demand curve reflect the effects of changes in the:
a. price level on the quantity of money demanded
b. interest rate on the demand for money.
c. real exchange rate on the demand for money.
d. interest rate on the quantity of money demanded.
e. potential GDP on the quantity of money demanded.
d
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The demand curve in the figure above illustrates the demand for a product with
A) zero price elasticity of demand at all prices. B) infinite price elasticity of demand. C) unit price elasticity of demand at all prices. D) a price elasticity of demand that is different at all prices.
The reserve ratio is 10% and a bank has $600,000 in transaction deposits. The amount of reserves equals
A) $6,000. B) $60,000. C) $600,000. D) undeterminable without information on cash reserves.
What is the equilibrium price and quantity of CFC-11 before the excise tax?
Consider the following market for CFC-11, a known ozone-depleting substance: Demand: Q= 20 – 1.5P Supply: Q= 5+0.5P whereP is price per pound. Assume the governmental authority imposes a $5 per pound excise tax on CFC-11, which shifts the supply function to Q’ = 2.5 +0.5P.Use this information for any or all of the next three questions below. a. P = $8.75; Q = 5 c. P = $6.875; Q = 8.75 b. P = $7.5; Q = 8.75 d. none of the above
If the supply curve is S and the demand curve shifts from D to D', what is the increase in producer surplus due to new producers entering the market?
a. $625
b. $2,500
c. $3,125
d. $5,625