According to traditional Keynesians, monetary policy is ineffective in affecting the economy during a recession because
A) an increase in the money supply will have little impact on interest rates.
B) an increase in the money supply will only lead to higher interest rates.
C) an increase in the money supply will only lead to lower investment spending.
D) an increase in the money supply will raise the amount of government debt.
Answer: A) an increase in the money supply will have little impact on interest rates.
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Total revenue can be defined as:
A. the amount that a firm receives from the sale of goods and services. B. the amount that a firm spends on all inputs that go into making a good or service. C. the total amount a firm spends on all inputs used in production. D. the total number of sales of a good or service by a firm.
In Europe, birth rates have fallen as the stork population decreased. This is likely a. a normative statement
b. confusing correlation and causation. c. the fallacy of composition. d. all of the above
Suppose Spencer and Kate are the only two demanders of lemonade. Each month, Spencer buys six glasses of lemonade when the price is $1.00 per glass, and he buys four glasses when the price is $1.50 per glass. Each month, Kate buys four glasses of lemonade when the price is $1.00 per glass, and she buys two glasses when the price is $1.50 per glass. Which of the following points is on the market demand curve?
a. (quantity demanded = 4, price = $2.50)
b. (quantity demanded = 16, price = $2.50)
c. (quantity demanded = 3, price = $1.50)
d. (quantity demanded = 10, price = $1.00)
When the price of sugar was "low," consumers in the United States spent a total of $3 billion annually on its consumption. When the price doubled, consumer expenditures actually INCREASED to $4 billion annually. This indicates that:
A. sugar is a Giffen good. B. the demand for sugar is elastic. C. the demand curve for sugar is upward sloping. D. None of the statements is correct.