In general, supply curves with an elasticity of supply between 0 and 1 are referred to as:
A. inelastic.
B. elastic.
C. perfectly elastic.
D. perfectly inelastic.
A. inelastic.
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Most economists believe that the best monetary policy target is
A) the money supply. B) an interest rate. C) the discount rate. D) total bank reserves.
Refer to Figure 29-1. Italians cut back on smoking and cut their demand for American cigarettes in half. Assuming all else remains constant, this would be represented as a movement from
A) A to D. B) D to C. C) B to C. D) B to A.
In the monetary small open-economy model with a flexible exchange rate, an increase in the foreign price level has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.
Suppose that the equilibrium price of T-shirts increases and the equilibrium quantity of T-shirts decreases. This is best explained by:
A. an increase in the demand for T-shirts. B. a decrease in the supply of T-shirts. C. a decrease in the demand for T-shirts. D. an increase in the supply of T-shirts.