Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line
Suppose that the slope of the line is positive and is less than 1. This slope means that a change in x is associated with A) a bigger change in y.
B) a smaller change in y.
C) no change in y.
D) an equal change in y.
B
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Why does the Fed have imperfect control over the money supply?
A. Because the Fed does not know how much reserves will change when it buys or sells securities. B. Because of unpredictable changes in the public’s desire to hold cash and banks’ desires to hold reserves. C. Because of unpredictable changes in reserve requirements. D. Because of the secrecy of FOMC meetings, which lead to policy surprises.
The United States truly became a mass consumption society in
A. the early 1900s. B. the 1920s. C. the 1940s. D. the 1960s.
Refer to Figure 9.2. A movement from point a to point d could be caused by a simultaneous ________ and ________
A) decrease in taxes; massive crop failure B) increase in government spending; decrease in the price of oil C) increase in taxes; increase in the price of oil D) decrease in the money supply; decrease in government spending
One would speak of a movement along a supply curve for a good, rather than a change in supply, if
A) prices of substitutes in production change. B) supplier expectations about future prices change. C) the price of the good changes. D) the cost of producing the good changes.