An increase in the money supply will affect aggregate demand
A) only if the increase in the money supply causes interest rates to rise.
B) only if the increase in the money supply causes people to buy less goods and services.
C) only if the increase in the money supply causes people to increase their saving.
D) if the increase in the money supply causes interest rates to fall and/or causes people to buy more goods and services.
D
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The long-run price elasticity of demand for electricity is ________ the short-run price elasticity of demand for electricity
A) greater than B) less than C) equal to D) not comparable to E) unrelated to
Promoters for the Rolling Stones were clearly "short selling" when
A) they distributed their latest CD to radio stations free of charge. B) they sold their latest CD to retailers at wholesale prices. C) they sold the world-tour concert tickets weeks in advance. D) they promoted the band without Bill Wyman, the original bass player.
The international trade effect states that a(n) ________ in the price level will ________ net exports
A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; not affect
How does the open-economy IS-MP model incorporate net exports with a fixed exchange rate system?
What will be an ideal response?