An increase in the money supply in the simple Keynesian model causes
A) income to fall.
B) inventories to rise.
C) interest rates to fall.
D) investment to fall.
C
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The demand for a necessity generally is
A) very elastic. B) infinitely elastic. C) unaffected by income. D) inelastic. E) unit elastic.
The government program that provides low-income people with government-issued stamps that can be redeemed for specific food items at food stores and supermarkets is the
a. emergency aid program b. food stamp program c. school lunch program d. hunger relief program e. meals on wheels program
Refer to the graph shown for a small country that is a price taker internationally.
Assume the foreign supply of this product is perfectly elastic at a price of $4 per unit. Starting from a free trade equilibrium, a tariff in the amount of $2 per unit would be expected to cause domestic consumption to:
A. decrease from 7,400 to 6,100. B. decrease from 4,800 to 3,600. C. increase from 2,400 to 7,400. D. increase from 2,400 to 3,600.
When considering choice architecture, a nudge:
A. can sometimes accomplish public policy goals in a less expensive way than traditional methods. B. presents choices that are similar to participants' ideal choices, but are slightly better than them. C. is a deliberate push by choice architect to get all people to behave a certain way. D. allows participants to choose among only choices that are good for them.