In the above figure, the economy is initially at point B. If the Fed increases the quantity of money, there is
A) a movement to point C.
B) a movement to point A.
C) a shift to AD2.
D) a shift to AD1.
D
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Florida State University has just lowered the price of its season football tickets from $350.00 to $300.00. As a result, there was an increase in the number of season tickets purchased from 43,000 to 47,000
The price elasticity of demand for season tickets equals A) 1.71. B) 1.58. C) 0.71. D) 0.58.
The observation that people tend to value something more highly when they own it than when they don't is called the
A) endorsement effect. B) endowment effect. C) path-dependent effect. D) wealth effect.
The time and money spent by a monopoly firm on lobbying for favorable government policies is called
a. the capitalized value of the firm b. limit pricing c. rent-seeking activity d. administered pricing e. implicit cost
According to the graph above, which of the following will occur if a legal price ceiling is imposed at price X?
What will be an ideal response?