Which of the following is false?
a. The price elasticity of demand measures the responsiveness of quantity demanded to a change in price
b. The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price.
c. If demand is elastic, it means the quantity demanded changes by a relatively larger amount than the price change.
d. All of the above are true.
d
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The monetary multiplier is 3 and the change in the monetary base is $100,000. How much will the quantity of money increase?
A) $300,000 B) $200,000 C) $100,000 D) $70,000 E) $33,333
Which of the following is not true for a firm in perfect competition?
A) Price equals average revenue. B) Average revenue is greater than marginal revenue. C) Marginal revenue equals the change in total revenue from selling one more unit. D) Profit equals total revenue minus total cost.
The relationship between money and spending is
A) very reliable. B) very unreliable. C) not important. D) None of the above.
Central banks that are relatively free from political interference, and are thus ________ likely to be time inconsistent, generally have a ________ record of achieving low inflation
A) more, better B) more, worse C) less, better D) less, worse