Suppose Good A is a normal good. Which of the following will increase the demand for Good A?
A) an increase in the price of its substitutes
B) a lower expected future relative price of A
C) an increase in the price of its complements
D) a decrease in income
A
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With downward-sloping monetary policy and IS curves,the aggregate demand curve is
A) downward sloping. B) flat. C) vertical. D) upward sloping.
A bank has $7 million in checkable deposits and $1.2 million in total reserves. If the required reserve ratio is 10 percent, then the bank has
A) required reserves of $700,000. B) excess reserves of $500,000. C) excess reserves of $1,080,000. D) required reserves of $120,000. E) a and b
The principle that if the amount of labour and other inputs is held constant, then the greater the amount of capital in use, the less an additional unit of capital adds to production is called the principle of:
A. increasing average capital productivity B. diminishing returns to capital C. increasing returns to capital D. decreasing output per unit of capital
In the above figure, the tax incidence is
A) that most of it is paid by the buyers. B) that most of it is paid by the sellers. C) split equally so that the buyers and sellers pay the same amount. D) that neither the buyers nor the sellers pay it.