If the quantity demanded of a good decreases by 10 percent when the price of the good increases by 5 percent, the elasticity of demand is -2.00
Indicate whether the statement is true or false
FALSE
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As part of the "exchange rate effect of monetary policy," a higher money supply causes __________ of the domestic currency and thus __________ net exports
A) appreciation; rising B) appreciation; falling C) depreciation; rising D) depreciation; falling
All of the following were took place during the German hyperinflation in the 1920s EXCEPT
A) banks reduced lending. B) some banks only made loans to customers who agreed to repay in terms of foreign currencies or commodities. C) Deutsche Bank had to lay off many workers due to lack of business. D) households and firms increased their demand for loans.
Which of the following reflects diseconomies of scale?
a. Marginal product decreases as output increases. b. Short-run marginal cost increases as output increases. c. Long-run marginal cost increases as output increases. d. Short-run average cost increases as output increases. e. As output doubles, long-run total cost more than doubles.
If the investment demand curve shifts to the left, then
A. The AD curve will shift to the left. B. The AD curve will not be affected. C. There will be upward movement along the AD curve. D. The AD curve will shift to the right.