A change that increases the real money supply relative to real money demand causes
A) the LM curve to shift down and to the right.
B) the LM curve to shift up and to the left.
C) the IS curve to shift down and to the left.
D) the IS curve to shift up and to the right.
A
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Which of the following statements is FALSE?
A) The rationing function of prices is not allowed to freely operate when the government imposes price controls. B) Price controls may take the form of price ceilings or price floors. C) Price ceilings below the equilibrium price can cause black markets to develop. D) Rent controls are examples of price floors.
Which of the following statement is true?
a. The demand for Cheerios is less elastic than the demand for cereal b. The demand for gas is more elastic in the short-run than in the long-run c. The demand for puma shoes is more elastic than the demand for shoes d. Products with many complements have a more elastic demand
If Maria gets 80 utils from consuming five cookies, 100 utils from consuming six cookies, and 120 utils from consuming seven cookies, then Maria's marginal utility from the sixth cookie is:
A. 100 utils. B. 80 utils. C. 40 utils. D. 20 utils.
New growth theory supports the idea thatI.economic growth can continue as long as we keep finding new ideas.II.increases in human capital can lead to greater rates of economic growth.
A. I only B. II only C. Both I and II D. Neither I nor II