The amount of national income in an economy equals the money supply in an economy
Indicate whether the statement is true or false
FALSE
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The property tax exhibits a U-shaped patter with respect to income
a. True b. False
Which of the following is not true of an economic expansion?
a. The economy is overheated. b. There is too much spending. c. Production exceeds equilibrium output. d. The aggregate expenditure line is too low to create an intersection at full-employment output. e. Unemployment will be unusually low.
Which of these measures the responsiveness of the quantity of one good demanded to an increase in the price of another good?
A) price elasticity. B) income elasticity. C) cross-price elasticity. D) cross substitution elasticity.
Which of the following options would be most likely to cause an increase in short-term real interest rates?
a. The Federal Reserve cuts the discount rate. b. The Federal Reserve lowers the reserve requirement. c. The Federal Reserve sells bonds in the open market. d. The federal budget is shifted toward a surplus.