If demand is price elastic, then when price decreases, total revenue:
a. decreases.
b. increases.
c. does not change.
d. is less than one.
e. is negative.
b
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In 1990, the GDP of Canada was $680 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 85 U.S. cents. In 2000, the GDP of Canada was $1000 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 69 U.S. cents. By what percentage did the GDP of Canada increase from 1990 to 2000 in Canadian dollars?
a. 19.4% b. 47% c. 68% d. 147%
If a bank lends funds in the form of cash, then:
a. M1 and M2 do not change. b. M2 stays the same, but M1 rises. c. M2 stays the same, but M1 falls. d. M2 rises, and M1 falls. e. M1 and M2 rise.
To correct the budget deficit for inflation, we should
A. multiply the budget deficit by the price deflator for GDP. B. subtract interest payments from tax revenues. C. divide the budget deficit by nominal GDP. D. divide the budget deficit by the consumer price index.
Which of the following statements about a perfectly competitive market is INCORRECT?
A. There are many sellers, each supplying a small quantity. B. There are many buyers, each purchasing a small quantity. C. The market sells homogeneous products. D. Buyers and sellers cannot enter exit the market freely.