Which of the following changes shifts the AD curve down and to the left?
A. A decrease in income taxes
B. An increase in the future marginal productivity of capital
C. A decline in the nominal money supply
D. A decrease in the risk on nonmonetary assets
Answer: C
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Refer to the scenario above. Pat should submit a bid of ________
A) $200 B) $180 C) $45 D) $135
It is possible for a market for a good to experience a surplus and a shortage at the same time
Indicate whether the statement is true or false
Which of the following provides the best explanation of why money is valuable?
a. Money is valuable because it is indivisible. b. Money is valuable because it is scarce. c. Money is valuable because it is backed by precious metals, primarily gold and silver. d. Money is valuable because it has intrinsic value, independent of its use as a means of exchange.
Suppose that the average total cost of producing 5,000 Corvettes is $30,000 and the average total cost of producing 10,000 Corvettes is also $30,000 . Assuming this cost structure continues to hold, what can you say about the change in General Motors' total cost of Corvette production when they make the 10,001st car?
a. The total cost of production does not change at all. b. The total cost of production will increase by the average variable cost of the next car. c. The change is negative because there are diseconomies of scale. d. There is not enough information to answer this question. e. The total cost of production will increase by $30,000.