In a world where the price level could adjust immediately to its new long-run level after a money supply increase
A) The dollar interest rate would increase because prices would adjust immediately and prevent the money supply from rising.
B) The dollar interest rate would fall because prices would adjust immediately and prevent the money supply from rising.
C) The dollar interest rate would fall because prices would adjust immediately and prevent the money supply from decreasing.
D) The dollar interest rate would decrease because prices would adjust immediately and prevent the money supply from decreasing.
E) The dollar interest rate would fall because prices would not be able to prevent the money supply from rising.
B
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Use the above table. What percentage of income is received by the poorest 20% of the population?
A) 20 percent B) 13.3 percent C) 11.1 percent D) 7.0 percent
Detailed studies indicate that, on balance, the Social Security retirement system
a. redistributes a substantial amount of income from the rich to the poor. b. redistributes a substantial amount of income from whites to blacks. c. is particularly advantageous to those with a shorter life expectancy. d. is not particularly advantageous to the poor due to their shorter life expectancy.
When income rises for the buyers of good X, the ____________ curve for good X will shift ________________
A) demand; rightward B) demand; leftward C) supply; rightward D) supply; leftward E) This question cannot be answered unless we know whether good X is a normal good, a neutral good, or an inferior good.
Govts want savings to increase, ____
a. so that loan interest rates will increase b. so that spending on business investment will increase c. so that immigration will increase d. all