Price discrimination is more likely in the case of services than in the case of goods because
A) producers of goods usually do not face downward sloping demand curves.
B) it is easier to distinguish customers with different elasticities of demand with respect to services than with goods.
C) elasticities of demand vary more with services than with goods.
D) it is more difficult to resell services.
D
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A variable is a factor that:
A) cannot be measured. B) is not affected by changes in other factors. C) is independent and cannot be determined. D) takes different values at different points of time.
Refer to Figure 23-3. Suppose that investment spending increases by $10 million, shifting up the aggregate expenditure line and GDP increases from GDP1 to GDP2. If the MPC is 0.9, then what is the change in GDP?
A) $9 million B) $10 million C) $90 million D) $100 million
A large and growing current account deficit can be an indicator of a potential crisis
Indicate whether the statement is true or false
Which of the following is the Fed's most common way to change the money supply?
a. Moral suasion b. The discount rate c. The required reserve rate d. Open market operations