If net taxes fall by $80 billion, we would expect
A) the government deficit to fall by $80 billion.
B) household saving to rise by $80 billion.
C) household saving to fall by more than $80 billion.
D) household saving to rise by less than $80 billion.
D
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Suppose that you decide that you no longer want to hold currency, and deposit all of your currency holdings to your checking account. What is the immediate or initial impact of this transaction on M1 and M2?
What will be an ideal response?
Persistence is
A) the tendency for declines in economic activity to be followed by further declines, and for growth in economic activity to be followed by more growth. B) the idea that the standard pattern of contraction—trough—expansion—peak occurs again and again in industrial economies. C) the tendency of many economic variables to move together in a predictable way over the business cycle. D) the idea that peaks and troughs of the business cycle occur at regular intervals.
A change in the money supply changes only nominal variables in the long run
a. True b. False Indicate whether the statement is true or false
Because there are very significant economies of scale involved in making flat screen television sets in a competitive market, the price of flat screen TVs will:
A. stay exactly the same regardless of any shifts in the demand curve. B. rise because of the combination of stronger demand and higher production costs. C. rise because the long run average total cost curve is upward-sloping over the entire range of output. D. fall as output expands because long-run average total costs are lower for higher quantities.