Assuming price elasticity of demand is reported as an absolute value, a price elasticity of demand less than one indicates demand for the good is:
A. elastic.
B. inelastic.
C. unitary elastic.
D. unrelated to price.
B. inelastic.
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The GDP deflator is designed to adjust nominal GDP
a. for changes in the unemployment rate. b. for changes in prices. c. for problems that arise because of externalities. d. for changes in interest rates.
An open market __________ by the Fed increases the money supply; a(n) __________ in the required reserve ratio increases the money supply
A) sale; decrease B) purchase; increase C) sale; increase D) purchase; decrease
Which of the following is correct?
A. SMC = PMC - MD B. MPB = MSB + MEB C. SMC = PMC + MD D. MSC = MPB E. MSB = MSC + MPB
The classical quantity theory of money is based on
A. exchange rate theory. B. Say's law. C. the equation of exchange. D. Keynesian theory.