If the market ratio of silver to gold is 16 to 1 and the mint ratio is 15 to 1,
a. people will cease to use gold and silver as money.
b. the Treasury will be forced to issue paper money.
c. gold is undervalued at the mint.
d. silver is undervalued at the mint.
c. gold is undervalued at the mint.
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Holding everything else constant, if total factor productivity increases, the debt-to-GDP ratio will ________, and if the labor force growth rate increases, the debt-to-GDP ratio will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
The most plausible reason why changes in the price of cotton can cause shifts in the supply curve for tobacco is:
a. cigarette smokers often wear cotton shirts. b. when incomes rise, people consume more cotton and tobacco. c. firms can switch from growing tobacco to cotton and vice versa. d. tobacco is an input in the production of cotton. e. cotton and tobacco are unrelated markets in all ways.
If the price elasticity of demand for a good is 5.0, then a 10 percent increase in price results in a
a. 0.5 percent decrease in the quantity demanded. b. 2.5 percent decrease in the quantity demanded. c. 5 percent decrease in the quantity demanded. d. 50 percent decrease in the quantity demanded.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower